Valneva Receives Buy Rating from H.C. Wainwright with $18 Price Target

H.C. Wainwright analyst Brandon Folkes assumes coverage of Valneva with a Buy rating and $18 price target. The firm believes Valneva's VLA15 vaccine has a "de-risked, relatively high-probability path" to blockbuster sales, citing the company's strong proprietary portfolio. Valneva is a commercial-stage vaccine company.

Valneva SE (EPA: VLN) has garnered attention from analysts, with H.C. Wainwright analyst Brandon Folkes recently assuming coverage of the company with a Buy rating and a $18 price target. The firm believes that Valneva's VLA15 vaccine, a Lyme disease candidate, has a "de-risked, relatively high-probability path" to blockbuster sales, citing the company's strong proprietary portfolio. Valneva, a commercial-stage vaccine company, is navigating regulatory scrutiny and market expansion with its IXCHIQ® chikungunya vaccine, while also diversifying its pipeline to mitigate risks.

In the first half of 2025, Valneva reported a €20.8 million net loss, driven by R&D costs and reduced cash burn, which fell by 77.7% year-over-year. Despite this, the company's revenue surged 37.8% year-over-year to €97.6 million, with IXCHIQ® sales jumping 650% to €7.5 million. Valneva's operating cash burn plummeted to €10.9 million, and the company has €161.3 million in cash and equivalents, positioning it to fund key milestones and pipeline diversification [1].

Regulatory approvals for IXCHIQ® in Brazil and other markets have expanded Valneva's market access, supported by strategic partnerships with Instituto Butantan and the Serum Institute of India. The vaccine's Phase 3 data have shown a robust immune response, and label extensions have broadened its utility. However, safety concerns over serious adverse events (SAEs) in elderly patients prompted regulatory pauses, which have since been lifted by the FDA for individuals aged 60 and above [1].

Valneva's pipeline diversification includes Phase 3 trials for VLA15, as well as Shigella and Zika candidates in Phase 2. The company's strong cash reserves and strategic access to endemic markets position it to capitalize on multiple high-need areas, such as Lyme disease, which affects 30,000+ U.S. cases annually. Additionally, Valneva's partnership with CSL Seqirus in Germany could drive sales of its Japanese encephalitis and travel vaccines [1].

H.C. Wainwright's optimistic outlook is based on Valneva's strong proprietary portfolio and the de-risked path of VLA15. The company's financial discipline, strategic alliances, and pipeline depth position it to emerge stronger from regulatory challenges and market expansion. However, investors should monitor the Phase 3 Lyme data and the outcomes of the post-marketing IXCHIQ® study to assess the vaccine's safety profile and potential impact on adoption rates.

References:
[1] https://www.ainvest.com/news/valneva-ixchiq-vaccine-navigating-safety-concerns-unlock-long-term-2508/