Vaxcyte named as Top Pick, added to Conviction list at Needham

Needham analyst Joseph Stringer names Vaxcyte (PCVX) as Needham Top Pick for 2023 and also adds it to the Needham Conviction list, replacing Apellis Pharmaceuticals (APLS). The analyst has also raised the firm’s price target on Vaxcyte to $58 from $52 and keeps a Buy rating on the shares. Stringer cites the company’s positive initial VAX-24 Phase 1/2 results released in October 2022, which he believes have significantly de-risked its VAX-24 Pneumococcal Conjugate Vaccine lead program. The analyst further contends that the significant pharma interest in the Pneumococcal Vaccine space – a $7B market dominated by Pfizer’s (PFE) Prevnar – and the "best-in-class" profile of VAX-24 has potential to make Vaxcyte a "compelling M&A target".