Top analysts are giving Dynavax Technologies Corporation (DVAX) high scores for its novel vaccines and vaccine adjuvant technology in the United States, especially given recent COVID-19-related catalysts.
The stock rating earns an “Outperform” 9 out of 10 with multiple bullish indicators and an analyst consensus price target of nearly 100% upside in 2022. This gives investors, including myself, plenty of reasons to be bullish as we start the New Year.
Dynavax is a mid-cap biotechnology company with a diverse portfolio of vaccine candidates, novel adjuvants, and vaccine components across indications from Hepatitis C to COVID-19. Based on Dynavax’s latest earnings release, the company posted quarterly revenues of $108 million and a net loss of $28.4 million, compared to revenue of $13.4 million and a net profit of $4.4 million last year. The company ended the quarter with a balance sheet including cash and equivalents of $414 million, compared to $164 million as of December 31, 2020. Indeed, the most recent earnings call had plenty of positive notes from the C-suite:
“In the near term, we remain focused on our core strategic objectives to inform our capital allocation decisions. This includes driving HEPLISAV-B market share, fully executing on our CpG 1018 adjuvant supply collaboration…Additionally, we look forward to multiple important milestones in anticipated catalysts in 2022, including the beginning of the implementation of the updated ACIP recommendation for adult hepatitis B vaccination, upcoming clinical and regulatory milestones from each of our COVID-19 partnerships, and continued progress in our early-stage R&D program.”Kelly MacDonald – CFO
The CORBEVAX Catalyst
Interestingly, the most important part of the Dynavax portfolio is not a vaccine, but the adjuvant component used in the CORBEVAX COVID-19 vaccine being developed by Indian pharmaceutical company Biological E.
CORBEVAX was developed by Biological E in a venture with the Texas Children’s Hospital and Baylor College of Medicine based on the receptor-binding domain of the spike protein of the coronavirus. With recent regulatory approval from Indian regulators for CORBEVAX, the Dynavax partnership with Biological E as the exclusive adjuvant supplier becomes a great boon for investors.
Accordingly, being the sole supplier of CORBEVAX should provide a boost to share prices, considering India’s Union Ministry of Health finalized a deal to reserve 300 million doses of the vaccine.
Wall Street’s Take
Following this sentiment, recent analysts at H.C Wainwright have reiterated a $28 price target with a 117% upside target on the stock.
This further substantiates the Strong Buy consensus rating based on four Buys assigned in the past three months from Wall Street analysts. The average Dynavax price target of $27.67 implies 115.3% upside potential.
Not surprisingly, news sentiment and buzz for Dynavax is very bullish behind the vaccine regulatory approval. The TipRanks’ News Sentiment tool shows 100% bullish sentiment over the past seven days on the stock, well over the sector average for the same period.
Dynavax investors seem to have a good deal to get excited about as we start to head into 2022. News and analyst sentiment continue to strike positive tones on the back of recent regulatory approvals, a solid balance sheet, and a diversely targeted portfolio.
With upcoming 2022 catalysts de-risked by recent regulatory decisions on CORBEVAX, there are plenty of reasons for Dynavax to outperform and validate a bullish thesis.
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Disclosure: At the time of publication, Michael Ronzetti did not have a position in any of the securities mentioned in this article.
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