Roth Capital has adjusted its price target for GeoVax Labs (GOVX, Financial), reducing it from $20 to $18 while maintaining a Buy rating on the stock. This decision follows a recent notification GeoVax received, directing the company to halt work on its Phase 2b COVID-19 vaccine trial. The trial, which was to evaluate the GEO-CM04S1 vaccine, was expected to be financed by the Biomedical Advanced Research and Development Authority (BARDA).
The analyst noted that GeoVax was not uniquely targeted, as similar notifications were issued to other companies operating under BARDA contracts valued at approximately $400 million. Among those receiving this directive alongside GeoVax were Vaxart (VXRT) and Cyanvac. The pause or termination of these programs prompted Roth Capital to lower its price target due to the anticipated loss of near-term revenue.
Of the six companies benefiting from similar BARDA-funded grants, there is a prediction that Castlevax, Codigenix, and Gritstone bio (GRTS) might also experience similar interruptions. This development underscores the potential challenges these biotech firms face as they navigate funding uncertainties in the ongoing effort to advance COVID-19 vaccines.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Geovax Labs Inc (GOVX, Financial) is $14.60 with a high estimate of $20.00 and a low estimate of $8.00. The average target implies an upside of 1,536.95% from the current price of $0.89. More detailed estimate data can be found on the Geovax Labs Inc (GOVX) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, Geovax Labs Inc's (GOVX, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
