William Blair analyst Y Katherine Xu is out with a bullish note on shares of Dynavax Technologies Corporation (NASDAQ:DVAX), after the FDA’s Vaccines and Related Biological Products Advisory Committee (VRBPAC) panel voted 12-1 with 3 abstentions that the safety to date supports DVAX’s Heplisav approval for vaccination against hepatitis B infection in adults over 18 years old.
The analyst wrote, “With the overwhelmingly positive note, the panel also focused on how to design and ensure proper and timely execution of the postmarketing study to further investigate the safety signals observed in the database to date. We believe this voting outcome will lead to approval of Heplisav on its PDUFA date of August 10, 2017.”
Xu continued, “Dynavax intends to launch Heplisav in early 2018 on its own or with a commercial partner. We have revised our model to 1) reflect out-licensing of Heplisav; and 2) increase the probability for Heplisav to reach the market in the United States from 70% to 95%. As a result, we increase our fair value estimate for Dynavax shares from $17 to $30; importantly, our fair value estimate only values Heplisav and does not yet include valuation of Dynavax’s oncology business.”
As such, Xu reiterated an Outperform rating on Dynavax shares, while boosting the price target to $30.00 (from $17.00), which represents a potential upside of 88% from where the stock is currently trading. (To watch Xu’s track record, click here)
Today, DVAX has received 4 Buy ratings from analysts. The average analyst price target of $33.67 stands at a 110% upside from the current share price. The upside is partly due to the fact that shares have fallen so far since the price targets were issued.