Stifel Downgrades HilleVax, Inc. (HLVX) to Hold

Stifel analyst Stephen Willey downgraded HilleVax, Inc. (NASDAQ: HLVX) from Buy to Hold with a price target of $3.00 (from $34.00).

The analyst comments: "Following disappointing top-line data from the P2b NEST-IN1 trial resulting in the discontinuation of HIL-214 development in infants, we are downgrading HLVX shares from Buy to Hold. The company remains well-capitalized and we wouldn’t discount the possibility of management subsequently articulating a development path forward with HIL-214 (or HIL-216) in older/at-risk adults – a setting accounting for most of the norovirus-caused morbidity/mortality and associated healthcare costs in developed countries and where both field/challenge studies have demonstrated vaccine-strain-specific efficacy and cross-protective/heterotypic coverage. However, we believe such a development path would prove a time/resource-intensive (and non-registrational) undertaking unlikely to yield much near-term support from investors in light of NEST-IN1 data. Our updated model excludes HIL-214 infant sales and still outlines a longer-term/highly-dilutive path to HIL-214 registration/commercialization in adults. However, we see little opportunity for near-term price appreciation and our updated $3 target price now reflects our updated estimate of YE24 net cash."

For an analyst ratings summary and ratings history on HilleVax, Inc. click here. For more ratings news on HilleVax, Inc. click here.

Shares of HilleVax, Inc. closed at $1.64 yesterday.

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