Vaxart Inc (NASDAQ: VXRT) has seen a remarkable year on Wallstreet after investors rallied behind its experimental COVID-19 vaccine. VXRT stock has gained some serious ground over the past year, surging over 1,559% YTD. Unlike other COVID-19 vaccine candidates, the vaccine is administered orally and can be stored at room temperature. Analysts are certainly bullish on VXRT stock, with the average price target suggesting an upside of 26%. With so much speculation surrounding Vaxart stock, this article will breakdown everything investors need to know as we move into 2021.
Table of contents
Why Vaxart stock is surging?
Firstly, Vaxart stock has seen a strong shift in investor sentiment over the past few weeks. VXRT surged 34% yesterday and is already up 18% today according to pre-market data. Interestingly, the “COVID-19” stocks such as Novavax and Sorrento have also picked up serious gains. In addition to this, VXRT released some positive pre-clinical COVID-19 Vaccine Data last week.
“The latest data from the SARS-CoV-2 Hamster Challenge Study reinforces our belief that our oral COVID-19 vaccine candidate shows great promise. Our oral vaccine could help fight the COVID-19 epidemic globally because it is stable at room-temperature making it easier to transport, store, and administer than injectables. It may also appeal to those uncomfortable with injections.”said Andrei Floroiu, chief executive officer of Vaxart.
Analysts maintain buy rating on VXRT stock
The consensus amongst 3 Wallstreet analysts retains a Buy rating, with the average 12 month forecast at $17.67 a share. This suggests an upside potential of 26% from the current trading price. It is clear analysts can see the bullish side to VXRT stock over the next 12 months of trading.
12/3/2020 B. Riley – analysts reiterated their Buy rating, with a 12 month price target of $22 a share. This suggests an upside potential of 57% from the current trading price.
8/12/2020 HC Wainwright – analyst Vernon T. Bernardino boosted the 12 month price from $7 to $17 a share. The firm also maintained its position on a Buy rating for the stock.
VXRT Revenue forecasts for the year ahead
The revenue forecasts for 2021 and beyond remain somewhat bullish for VXRT investors. Across the board of 3 analysts, the average forecasted revenue for 2021 currently sits at $32.88 million. This would suggest a 400% revenue increase year on year, which would come down to the success of its current trials. The bears will argue this is quite far fetched, with revenue for the third quarter of 2020 recorded at $265,000 compared to $454,000 in the third quarter of 2019. With a slowing revenue stream, it does place external pressure on VXRT management to turn this around.
Before I begin, I am obliged to remind our viewers that this article is not financial advice but rather investment commentary from extensive research.
In conclusion, Vaxart stock has been surging after investors rallied behind strong analyst sentiment, positive pre-clinical data and a market rallying behind heavily shorted stocks. It is clear the revenue forecasts are positive. However, the bears argue it will be much harder to turn the ship around than once thought.
Written by Tyger Fitzpatrick
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The information above is not 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.