Analyst Alec Stranahan of Bank of America Securities maintained a Hold rating on Vir Biotechnology (VIR – Research Report), with a price target of $14.00.
Alec Stranahan has given his Hold rating due to a combination of factors including Vir Biotechnology’s strategic exit from the COVID-19 market and a significant decline in projected revenue for 2023. The company’s shift in focus to autoimmune diseases is seen as a positive move, but Stranahan believes that until Vir Biotechnology can effectively convert its capital into tangible results from its pipeline, a neutral stance is warranted. The anticipated revenue drop is mainly attributed to decreased profits from the sales of sotrovimab under the 2020 agreement with GSK.
Furthermore, the company’s recent corporate restructuring, aiming to prioritize its most promising programs, has led to the closure of R&D facilities and a reduction in workforce. Despite these cost-cutting measures and forthcoming data catalysts in 2024, Stranahan remains cautious. He acknowledges that while there are multiple opportunities for the data to improve market sentiment in the near term, none are expected to be transformative for the stock. Execution of these strategic initiatives will be crucial in the coming months, and until then, the Hold rating is maintained with a price objective of $14.00.
Stranahan covers the Healthcare sector, focusing on stocks such as RegenXBio, Novavax, and TG Therapeutics. According to TipRanks, Stranahan has an average return of 6.7% and a 57.75% success rate on recommended stocks.
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Vir Biotechnology (VIR) Company Description:
Vir Biotechnology, Inc. engages in the provision of technologies to treat and prevent infectious diseases. Its technology platforms include antibody, T cell, innate immunity, and siRNA. The company was founded by Robert Taylor Nelsen, Klaus Frueh, Jay Parrish, Lawrence Corey, and Louis Picker in 2016 and is headquartered in San Francisco, CA.
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- Vir Biotechnology price target raised to $110 from $85 at H.C. Wainwright
