Maxim Group has initiated coverage of Evaxion Biotech (NASDAQ: EVAX) with a Buy rating and a $10.00 price objective, according to a report published Wednesday. With the shares trading at $3.32 at the time of the report, Maxim's target implies roughly a 201% upside from current market levels. InvestingPro data referenced in the report indicates the stock is trading below its Fair Value assessment.
The analyst note underscores Evaxion's proprietary artificial intelligence platform, which the company has developed for nearly two decades. According to the firm, Evaxion uses that platform to design therapeutic and prophylactic vaccines across oncology, infectious disease and autoimmune indications. Maxim highlighted the platform's ability to identify and select targets in as little as 24 hours and at roughly 10% of the cost compared with traditional discovery methods.
Strategic collaborations were an important factor in Maxim Group's initial rating. The report singles out Evaxion's partnership with Merck - finalized in the second half of 2025 - and notes that Merck has accumulated a 15% equity stake through three separate financings. Maxim treated that relationship as a key element supporting its investment case.
Clinical evidence is also central to the firm's view. Evaxion's Phase 2 melanoma trial reported a 75% overall response rate, with a reported durability metric showing that 92% of responders maintained that benefit for two years. The company expects to release three-year follow-up data in the second half of 2026, per the materials cited in the coverage initiation.
Maxim described Evaxion's corporate strategy as partner-focused, prioritizing platform deals and collaboration around validated assets. The note identifies oncology as the company's leading segment, where the platform is applied to novel and personalized targets with the aim of improving immune response and treatment durability.
On the financial side, the report calls attention to Evaxion's robust revenue growth and capital position. Revenue expanded by 132%, according to the report, and analysts tracked by the research indicate further sales growth is expected. The company is said to hold more cash than debt on its balance sheet, and its next scheduled earnings release is March 27. The report also points readers to InvestingPro for additional analysis and guidance specific to the stock.
The coverage initiation comes amid a mix of program-level developments. Evaxion announced that MSD, operating as Merck & Co., Inc., declined to exercise its option for the company's gonorrhea vaccine candidate, EVX-B2, freeing Evaxion to pursue an alternate licensing partner for that program. Separately, MSD did exercise an option on another candidate, EVX-B3, a program that could yield up to $592 million in milestone payments and royalties to Evaxion under the terms disclosed.
Independent activity by other brokerages has mirrored interest in parts of Evaxion's pipeline. H.C. Wainwright reiterated a Buy rating and set a $16.00 price target after Evaxion presented preclinical data for its cancer vaccine candidate EVX-04 at a major medical conference. That program, aimed at acute myeloid leukemia, produced strong T-cell responses and prevented tumor growth in preclinical models, according to the presentation materials.
Additional platform-driven progress includes the discovery of novel cytomegalovirus antigens by Evaxion's AI-Immunology(TM) platform. The company reported that these antigens significantly reduce viral infection in preclinical testing as part of its EVX-V1 program, reflecting ongoing work across infectious disease and oncology programs.
Overall, Maxim Group's initiation emphasizes the combination of a long-standing AI platform, strategic industry collaboration, and a series of clinical and preclinical readouts as the rationale for a Buy recommendation and a $10 price target.