In a report released yesterday, Terence Flynn from Morgan Stanley maintained a Hold rating on Arvinas Holding Company, with a price target of $10.00.
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Terence Flynn’s rating is based on a combination of strategic shifts and financial considerations at Arvinas Holding Company. The decision to out-license commercialization rights for vepdegestrant (vepdeg) with Pfizer is seen as a positive move to reduce the need for a significant sales force investment, especially given the smaller than anticipated market opportunity. However, the competitive landscape in the SERD space requires evidence of strong partnering interest, which remains to be seen.
Additionally, Arvinas is refocusing on its early-stage pipeline, which includes promising developments like ARV-102 and ARV-393. The company is implementing cost optimization measures, including workforce reductions and limiting spending on vepdeg, aiming for over $100 million in annual savings. These strategic shifts, while promising, also come with uncertainties, leading to a Hold rating as Arvinas navigates these transitions.
Flynn covers the Healthcare sector, focusing on stocks such as Gilead Sciences, BioNTech SE, and Pfizer. According to TipRanks, Flynn has an average return of 3.5% and a 54.84% success rate on recommended stocks.
In another report released on September 18, Wedbush also maintained a Hold rating on the stock with a $9.00 price target.