Ocugen Inc (NASDAQ: OCGN) is a US based bio-pharma which has focused on developing a cure for blindness disease. However, the company has since shifted its efforts to develop a COVID-19 vaccine with partner Bharat Biotech. On April 21, Bharat Biotech released their second interim results boasting a 78% efficacy after the second dose. In addition, the results highlighted a 100% protection against severe cases of the disease including hospitalisation. Ocugen’s CEO Shankar Musunuri has made it clear the company strategises to disrupt the current COVID-19 vaccine market with Covaxin. As a result, the OCGN stock price has seen a 2,800% gain over the past year of trading. This article will breakdown everything investors need to know about Ocugen stock in 2022 and beyond.
Table of contents
Analysts stock forecasts for Ocugen stock
Firstly, across the board of Wallstreet analysts the general consensus is a Buy. The average 12 month price target from analysts is at $12.50 a share according to WSJ data. Prior to their COVID-19 vaccine developments, the companies average price target was around $0.98 a share. This suggests analysts can see the upside in the companies shift of resources towards their vaccine Covaxin. Here are the most recent price targets from this year from institutional analysts:
Roth Capital 3/4/2021– Analysts Zegbeh Jallah reiterated the firms 12 month price target at $10 a share. This suggests an upside of 8% from the current trading price. In addition, Roth Capital maintains a buy rating on the stock. Jallah noted to investors “Ocugen believes it has sufficient information to support EUA filing in the U.S. If granted, this could lead to a significant revenue generating opportunity for Ocugen.”
Cantor Fitzgerald 3/3/2021 – Kristen Kluska boosted the firms 12 month price target from $4 to $15 a share. Cantor Fitzgerald also upgraded their rating from positive to overweight. This suggests analysts are confident Ocugen can outperform over the next 12 months.
Chardan Capital 2/9/2021 – Analysts at Chardan Capital downgraded their rating on OCGN stock from a Buy to a Neutral. The downgrade came after the stock reached its 52 week high of $18.77 a share.
Ocugen and Bharat’s COVID-19 Vaccine
Firstly, the company released their full year results for 2020 and vaccine update last Thursday. The company announced that an Emergency Use Authorization (EUA) pathway with United States is currently in the works. This will allow for Covaxin to enter the US market and challenge the current COVID-19 vaccine leaders. Furthermore, the recent data from Bharat Biotech illustrates effectiveness against both severe and asymptomatic cases of the disease. However, the highlight from these trials show data to suggests the vaccine may also be effective against new variant strains of the virus.
“The safety and efficacy demonstrated by COVAXIN is remarkable because of the prevalence of several variants of the coronavirus circulating at the time of the trial.”said Dr. Bruce Forrest, member of the vaccine scientific advisory board of Ocugen.
Revenue outlook for Ocugen over the next year
Firstly, it’s important to note the company only generated $42,000 in revenue for 2020. This becomes an important factor when comparing to the current revenue forecasts for 2021 and 2022. The average revenue forecast across the board of 2 analysts averages at $452 million in revenue in 2021, according to Yahoo data. This suggests an YOY increase of over 1,000,000% which is mind blowing. Furthermore, the average revenue forecast for 2022 expects Ocugen to generate $858 Million according to analysts. It can be difficult to comprehend the extreme increase in revenue YOY. However the COVID vaccine market is expected to grow to $75 billion in 2021 according to Brandessence Market Research.
Risks involved with Ocugen stock
As we have seen over the past month of trading, Ocugen has been highly susceptible to volatility. However, the high volatility is not new to the COVID vaccine industry. The main driver is the vast speculation from investors regarding the performance of the vaccine. Ocugen is yet to receive approval from the United States FDA for Emergency Use, which is a primary goal for Ocugen. Therefore, the overall outlook on the companies vaccine efforts in 2021-22 is still unknown. This factor may exceed some investors risk appetite.
Ocugen Stock Forecast Summary
In conclusion, the consensus amongst analysts suggests a bullish undertone with strong revenue forecasts and price targets as high as $15 a share. Furthermore, the companies COVID-19 vaccine data suggests a niche within the market, addressing the global concern over COVID variants. However, as discussed the involved risks associated with the evolving COVID-19 vaccine market will play a influential role in the longevity of Ocugens stock price.
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.
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