On Tuesday, Arcturus Therapeutics (NASDAQ:ARCT) maintained a Buy rating with a set share price target of $79.00, as confirmed by a Laidlaw analyst. The endorsement followed the announcement of successful Phase III study results for Kostaive (ARCT-2301), a bivalent Covid vaccine developed in partnership with Japan's Meiji Holdings.
The Laidlaw analyst highlighted the significance of the positive outcomes, which align with the earlier Phase III results for Kostaive's previous version (ARCT-154) used as a booster vaccine. The analyst emphasized the potential of sa-mRNA-based Covid vaccines, which seem to be distinct from other mRNA products, suggesting a promising future for such vaccines in the market, potentially extending beyond Covid applications.
The analyst's reiteration of the Buy rating and the $79.00 share price target is rooted in a bullish stance on Arcturus's unique mRNA platform. The expectation of regulatory success and a positive commercial trajectory for the company's pipeline products also contribute to the favorable outlook. The valuation is based on a mix of probability-adjusted discounted cash flow (DCF) and price-to-earnings (PE) analyses.
The successful Phase III study results are considered a strong indicator of the vaccine's efficacy and could pave the way for future development opportunities for Arcturus Therapeutics. The company's focus on sa-mRNA-based vaccines positions it favorably in the landscape of Covid vaccine development and beyond.
Arcturus's partnership with Meiji Holdings has been instrumental in advancing the clinical trials for Kostaive, and the latest results may further solidify the collaboration between the two entities. The positive findings are anticipated to contribute to the continued interest and investment in Arcturus's vaccine development programs.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.