Cantor Fitzgerald launched coverage of Arcturus Therapeutics (NASDAQ:ARCT) with an “overweight” rating and $71 price target. The stock closed at $35.94 on July 1.
Arcturus is leveraging its proprietary lipid-based delivery platform to develop the next-generation mRNA COVID vaccine.
“We see a clear disconnect in its current valuation, as the market thinks the vaccine market is already well addressed by the current players,” writes analyst Brian Cheng. “We believe that is not the case.”
Mr. Cheng pointed to the market persisting longer than investors expect, with room for new players and demand for a booster shot on the near-term horizon.
Arcturus already has preorder contracts in Israel and Singapore, which may enable expansion into other largely untapped international markets, Mr. Cheng said.
“Beyond COVID, we believe the rest of the early pipeline in influenza and rare diseases will remain as a source of upside at this level,” he added.