Valneva: Goldman Sachs downgrades stock, slashes TP
(CercleFinance.com) - Goldman Sachs on Friday downgraded its rating on Valneva shares from "buy" to "neutral", obliterating its target price from 27.
5 euros to 8 euros, following recent developments that it deems disappointing in the group's Covid-19 vaccination program.
While the broker believes that there is no guarantee that the laboratory will officially end its activities in this area following Brussels' intention to cancel its vaccine order, Goldman believes that it is safer to take a cautious approach to the issue.
The analyst therefore removes from the stock's valuation model some 365 million euros in revenue that was expected to be generated from the VLA2001 program in 2023 and 405 million euros of annual revenue expected from FY 2024 onwards.
That said, Goldman Sachs points out that the company still has "significant" opportunities in its pipeline, starting with VLA1553 in chikungunya and VLA15 in Lyme disease.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
5 euros to 8 euros, following recent developments that it deems disappointing in the group's Covid-19 vaccination program.
While the broker believes that there is no guarantee that the laboratory will officially end its activities in this area following Brussels' intention to cancel its vaccine order, Goldman believes that it is safer to take a cautious approach to the issue.
The analyst therefore removes from the stock's valuation model some 365 million euros in revenue that was expected to be generated from the VLA2001 program in 2023 and 405 million euros of annual revenue expected from FY 2024 onwards.
That said, Goldman Sachs points out that the company still has "significant" opportunities in its pipeline, starting with VLA1553 in chikungunya and VLA15 in Lyme disease.
Copyright (c) 2022 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.