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Vaxart (NASDAQ:VXRT) shares surged Wednesday as B. Riley moved its two-and-a-half-year-long Neutral rating to Buy after the vaccine developer won more than $9M in funding from the U.S. Biomedical Advanced Research and Development Authority (BARDA).
The funds awarded to support preparatory work for a mid-stage trial for VXRT’s oral COVID-19 vaccine candidate marked the second time BARDA has backed the company, B Riley analyst Mayank Mamtani wrote.
“After being on the sidelines for over 2 1/2 years, we believe upside is in the details while downside risk has diminished,” Mamtani added as he touted VXRT’s risk-reward setup at the current valuation and raised his price target to $2 from $1.50 per share.
He also alerted investors about the company’s upcoming catalysts, including those from its oral norovirus vaccine program and highlighted the company’s balance sheet strength, following a recent $10M equity offering.
Additionally, the analyst cited VXRT’s recent decision to appoint its chairman, Michael Finney, as interim CEO.