Please ensure Javascript is enabled for purposes of website accessibility

Why Vaxart Stock Is Skyrocketing Today

By Keith Speights - Jun 11, 2021 at 12:01PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors are cheering an analyst's positive recommendation.

What happened

Shares of Vaxart (VXRT -4.25%) were skyrocketing 27.6% higher as of 11:52 a.m. EDT on Friday. The huge gain came after Piper Sandler analyst Yasmeen Rahimi initiated coverage on the stock with an overweight rating. Rahimi set a price target of $18, reflecting a premium of more than 150% over Vaxart's closing price on Thursday.

So what

It's not unusual for a clinical-stage biotech stock (or any other stock, for that matter) to jump on positive analyst coverage. The important thing for investors to do is to understand why the analyst is bullish.

$1 bill folded into an arrow pointing up.

Image source: Getty Images.

In this case, Rahimi especially likes Vaxart's VAAST adjuvant. There have been enough clinical studies including VAAST that its risk level is relatively low, in the analyst's opinion. Primarily because of the adjuvant, Rahimi is optimistic about the potential for success of Vaxart's pipeline candidates.

The small drugmaker is currently evaluating several experimental oral vaccines in early-stage and preclinical testing. Its COVID-19 vaccine candidate, VXA-CoV2-1, has received the most attention from investors.

Now what

Vaxart hopes to advance VXA-CoV2-1 into a phase 2 clinical study this summer. It also plans to begin phase 1/2 studies evaluating variant-specific COVID-19 vaccine candidates in the third quarter of this year. 

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Vaxart, Inc. Stock Quote
Vaxart, Inc.
VXRT
$4.17 (-4.25%) $0.18

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
403%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/16/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.