A Closer Look at Dynavax Technologies's Valuation Following Promising New Shingles Vaccine Trial Results

Dynavax Technologies (DVAX) has just shared encouraging topline data from its Phase 1/2 trial for Z-1018, a shingles vaccine candidate. The company has also launched a new study phase focused on older adults. These developments could have investors taking a closer look.

See our latest analysis for Dynavax Technologies.

These promising clinical updates have arrived against the backdrop of a challenging year for Dynavax Technologies’ share price, which is down about 20% year-to-date. While recent vaccine results may encourage a fresh look, the 1-year total shareholder return sits at -12.9%. However, long-term holders have still seen significant upside with a 147% total return over five years, which hints at latent growth potential even as short-term momentum remains subdued.

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With shares still far below their analyst price targets and strong clinical trial momentum, is Dynavax an overlooked bargain with room to run, or is the market already accounting for its future growth prospects?

Most Popular Narrative: 55% Undervalued

Compared to the last close price, the most widely followed narrative calculates Dynavax Technologies’ fair value at $22.80, suggesting significant upside from current levels. This conclusion is built around favorable long-term catalysts shaping future earnings and margins.

Ongoing investment in the development pipeline (notably the shingles, pandemic influenza, and Lyme disease vaccine programs) positions Dynavax to benefit from heightened global government and public health focus on pandemic preparedness and preventative care. This could create new long-term revenue streams and diversify future earnings.

Read the complete narrative.

Curious how rapidly growing revenues and a sharp margin turnaround could add so much value here? The full narrative unveils the bold assumptions driving this eye-catching price target. Explore what might be fueling analyst projections for Dynavax’s dramatic future profit breakout.

Result: Fair Value of $22.80 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, heavy reliance on HEPLISAV-B and setbacks in pipeline programs could undermine Dynavax’s growth story and challenge its bullish outlook.

Find out about the key risks to this Dynavax Technologies narrative.

Build Your Own Dynavax Technologies Narrative

Whether you want to challenge this view or dig into the numbers yourself, crafting your own narrative is quick and straightforward. Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Dynavax Technologies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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