It’s been a rather dismal end to the week today. Indeed, many top tech stocks have been hit hard amid various economic concerns. One of the bigger losers today is CureVac (NASDAQ:CVAC), with CVAC stock currently down approximately 13% in late afternoon trading.
This move comes amid broadly bearish market sentiment today. Stocks are feeling the effects of what appears to be an overly hawkish monetary policy environment on the horizon. Bond yields have surged ahead of expectations the Federal Reserve will hike interest rates. Inflation concerns and supply chain issues continue to hit the economy hard, spurred by continued concern over the coronavirus pandemic.
For stocks like CureVac, one might think this macro environment may be a positive. After all, this is a company with an experimental Covid-19 vaccine. Vaccine stocks have been big winners in recent years, with CureVac’s vaccination hopes having been a driver for this stock in the past.
However, today, this narrative isn’t playing out. Let’s dive into what’s driving CureVac lower today.
Analyst Downgrade and Bearish Outlook Sinking CVAC Stock
Today, it appears a key Bank of America (NYSE:BAC) downgrade for CVAC stock is spooking investors. Analysts Geoff Meacham et al. have put forward a relatively dim outlook for the German biotech stock. The downgrade was to underperform from neutral, suggesting downside of more than 8% from yesterday’s close.
Today, CVAC stock has since moved below these analysts’ target range. It appears that CureVac’s decision to pull its European marketing application and instead focus on an mRNA vaccine is something the analysts don’t like. Additionally, analysts point out that the market opportunity is shrinking. Existing vaccine players currently dominate the market, making it harder for new entrants to grab market share.
Where CVAC stock ultimately goes from here remains to be seen. However, the market appears to be sharing analysts’ views on this stock today. Accordingly, it appears likely that volatility will continue for some time for this biotech stock from here.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.