Raymond James initiates coverage on Vir Biotechnology with Outperform rating and $12 PT.

Raymond James initiates coverage on Vir Biotechnology with Outperform rating and $12 PT.

Raymond James has initiated coverage on Vir Biotechnology, Inc. (VIR) with an Outperform rating and a price target of $12. The move comes after a significant 11.9% rise in VIR shares during the last trading session, closing at $5.93. This increase was backed by robust trading volume, with more shares changing hands than usual [1].

The stock's recent surge can be attributed to positive investor sentiment surrounding Vir Biotechnology’s late-stage pipeline candidate, tobevibart. Developed in combination with Alnylam’s elebsiran, tobevibart is in a phase III ECLIPSE 1 study for treating chronic hepatitis delta (CHD). Additionally, VIR is preparing to launch a phase III ECLIPSE 2 study to assess the efficacy and safety of switching to tobevibart and elebsiran in individuals with CHD who have not achieved viral suppression with bulevirtide treatment [1].

Despite the stock's recent gains, analysts caution that earnings and revenue growth expectations are crucial for evaluating the potential strength in a stock. VIR is expected to report a quarterly loss of $0.74 per share, representing a year-over-year change of +27.5%, with revenues projected at $7.05 million, up 128.8% from the year-ago quarter [1].

While earnings and revenue growth are vital, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. For Vir Biotechnology, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. A stock's price typically doesn't keep moving higher without a trend in earnings estimate revisions, so investors should keep an eye on VIR to see if this recent jump can turn into more strength down the road [1].

Vir Biotechnology belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Opus Genetics, Inc. (IRD), closed the last trading session 4.7% higher at $1.11. Over the past month, IRD has returned 3.9%, with a Zacks Rank of #2 (Buy) [1].

References:

[1] https://www.nasdaq.com/articles/vir-biotechnology-vir-soars-119-further-upside-left-stock