Stifel Downgrades HilleVax (NASDAQ:HLVX) Stock, Target Price Reduced to $3.00
On Tuesday, Stifel, a financial services firm, downgraded HilleVax, Inc. (NASDAQ:HLVX) stock from Buy to Hold. The firm also lowered its shares target to $3.00, down from $34.00, following disappointing results from HilleVax's Phase 2b NEST-IN1 trial for the HIL-214 vaccine for infants.
Stifel suggested that HilleVax may explore developing the vaccine for older adults, where there is a significant need, but cautioned that this path could be resource-intensive without immediate investor support. The firm's updated model now excludes infant sales of HIL-214 and anticipates challenges in registering and commercializing the vaccine for adult use.
The revised target price of $3.00 reflects Stifel's estimate of HilleVax's net cash position by year-end 2024. The firm believes there is limited potential for the stock's near-term appreciation given the recent trial outcomes and expected hurdles.
The downgrade and revised price target signal a cautious outlook on HilleVax's investment prospects. The company's decision to halt the development of HIL-214 for infants comes after the vaccine failed to meet efficacy endpoints in the NEST-IN1 trial.
HilleVax will now focus on advancing vaccine candidates for adult populations, pivoting from infant development. The company's CEO expressed disappointment in the trial results but remains optimistic about the efficacy shown in previous studies with adults.
In conclusion, the downgrade by Stifel and the halt in infant vaccine development by HilleVax reflect significant challenges ahead for the company. Investors should be wary of the stock's near-term potential and monitor future developments closely to assess the impact on their finances.