Swayampakula Ramakanth, an analyst from H.C. Wainwright, maintained the Buy rating on Evaxion Biotech. The associated price target was raised to $16.00.
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Swayampakula Ramakanth has given his Buy rating due to a combination of factors including Merck’s decision to exercise its option to in-license Evaxion’s vaccine candidate, EVX-B3. This move not only provides financial support but also extends Evaxion’s cash runway to the first half of 2027, allowing the company to progress through key milestones in its infectious disease and oncology programs. Additionally, Merck’s extension of the review period for another vaccine candidate, EVX-B2, indicates a strong possibility of further collaboration, enhancing the credibility of Evaxion’s AI-Immunology platform.
Furthermore, the financial model update reflects an increase in the 12-month price target to $16 per diluted ADS, up from $14, driven by anticipated payments from Merck. The valuation is supported by a risk-adjusted net present value analysis, considering potential future revenues and partnerships. Despite various risks such as partnership, technology, and regulatory challenges, the strategic collaboration with Merck and the financial implications of the deal underpin the Buy rating.
In another report released today, Lake Street also reiterated a Buy rating on the stock with a $6.00 price target.