iBio inc. (NYSE:IBIO) rose to popularity amongst the investor community as they announced their intentions to develop a COVID-19 vaccine. The stock is currently trading 586% higher since the beginning of 2020. However since July, iBio stock has been on a downward slope which has since found a new equilibrium at $2. The initial announcement of collaboration with Beijing CC-Pharming, led by Dr. Kevin Wang and iBio’s Dr. Sylvain Marcel saw investors rally. However as speculators fled to leading vaccine competitors such as Novavax and Moderna, it left questions on the long term sustainability of iBio stock. So let’s breakdown the forecasts for iBio moving into 2021 and beyond.
What is smart money saying about iBio stock?
The forecasts by analysts for iBio are limited with WSJ data suggesting only one 12 month price target at $3.10. NASDAQ data also only has one analyst 12 month price target at $6.65. This suggests an upside potential of 46% and 213% from the current price today respectively. With only 2 price targets available from analysts, the validity of these targets is skewed.
Institutional holdings or “smart money” can give us a good understanding in regards to how analysts view iBio as an investment. The institutions currently holding iBio stock include The Bank of America, Morgan Stanley, Charles Schwab Investment Management and Wells Fargo. The Bank of America and Morgan Stanley hold smaller stake in iBio while Charles Schwab and Wells Fargo hold a larger investment. To see the full list of institutions holding iBio, click here.
There is little to no revenue guidance for iBio moving into 2021 and beyond. With the main focus on the COVID-19 vaccine, the fundamentals don’t really add up for institutions. As iBio is one of the more affordable COVID-19 vaccine opportunities for investors, it is easy to see why it is so popular amongst the retail community. iBio is not likely to be first to obtain a clinically tested COVID-19 vaccine. However, it is almost certain there will be multiple COVID vaccines on the market by 2021. Therefore, there is still a lot of room for growth at $2.10 (opinion not advice).
Breakdown on iBio’s vaccine blueprint
The secret weapon for iBio is its manufacturing capabilities. Built in 2010, the Defence Advanced Research Projects Agency (DARPA) under the wing of the US Department of Defense aided iBio in building a “FastPharming Facility” . This would facilitate the manufacturing of vaccines quickly in the case of a Global Crisis. This funding was apart of the “Blue Angel” initiative. See our full article on FastPharming here.
This was a huge advantage initially for iBio stock and its investors. However the delay in advancing to beginning a Phase 1trial has left investors second guessing the companies future. We have seen multiple vaccine leaders delay the progression of their Phase 3 trial. This suggests the first vaccine of the market won’t be available till 2021 (A good sign for iBio investors).
Before I start, I am obliged to remind our viewers that this is not advice only general commentary from my extensive research in this area.
To summarise iBio’s current position as well as looking forward into 2021, it is clear the Pharma won’t be the first to release a COVID-19 vaccine. However, the demand for multiple COVID vaccines through 2021 and beyond gives hope to long term iBio investors. With little revenue and price target guidance, all eyes are on iBio to release further updates on the commencement of a Phase 1 trial.
The skewed forecasts for iBio suggest a great deal of speculation surrounding its vaccine and its competitors. Currently priced at $2.10 the stock is likely to skyrocket if iBio release a statement surrounding the Phase 1 trial (opinion not advice). However, until then the long term future of iBio stock remains up for debate with speculators.
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The information above should not be taken as financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.