Leerink Partners analyst David Risinger reiterated a Buy rating on HilleVax, Inc (HLVX – Research Report) on May 14 and set a price target of $28.00.
David Risinger has given his Buy rating due to a combination of factors that suggest a significant upside for HilleVax, Inc’s stock. The primary reason is the potential success of HilleVax’s HIL-214 in a Phase 2b trial for infants, which is anticipated to show results in mid-2024. Risinger believes the market is underestimating the impact of a successful trial, which would not only validate the vaccine’s use in infants — compared to the rotavirus vaccine generating roughly $1.5 billion annually — but also open up lucrative opportunities in the older adult and other adult markets, such as healthcare workers and travelers. He sees a 60% chance of trial success leading to a considerable increase in the stock’s valuation, given that the projected sales for the infant market alone could reach an estimated $667 million by 2032.
Furthermore, Risinger finds HilleVax’s valuation attractive, considering the multi-billion-dollar potential of HIL-214. With a market capitalization around $700 million and significant net cash reserves, the company is well-positioned financially. The potential for strategic acquisition interest from major global vaccine companies further supports the optimistic outlook, should the Phase 2b trial prove successful. Moreover, concerns from the CDC about the severity and economic impact of norovirus in the United States underscore the substantial need and potential widespread adoption of the vaccine. This backdrop of strong demand and the dire need for effective vaccines bolsters Risinger’s confidence in a Buy rating for HilleVax.
In another report released on May 10, H.C. Wainwright also reiterated a Buy rating on the stock with a $28.00 price target.
Based on the recent corporate insider activity of 21 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of HLVX in relation to earlier this year.
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HilleVax, Inc (HLVX) Company Description:
HilleVax Inc is a clinical-stage biopharmaceutical company. It is focused on developing and commercializing novel vaccines. The firm’s initial program, HIL-214, is a virus-like particle (VLP) based vaccine candidate for the prevention of moderate-to-severe acute gastroenteritis (AGE) caused by norovirus infection.
