And the winner for the most used new term goes to… Omicron, of course. The new Covid-19 variant has added a whole new layer of uncertainty to, well, everything.
Ok, not everything. Coronavirus stocks, unsurprisingly, swung higher. Amongst them, the ultimate 2020 coronavirus stock: Novavax (NVAX). The share gains continued the vaccine maker’s recent strong run, which has been based on its Covid-19 vaccine NVX-CoV2373 finally gaining traction with regulators in various regions. Plus, the company has now completed full data submissions for emergency use authorization (EUA) with several regulatory agencies across the globe.
The main causes of concern from the new variant are the possibility of more than 30 mutations it carries in the Spike gene, and as the WHO has noted, compared to other VOCs, preliminary evidence from this variant implies an increased risk of reinfection.
As such, with the prospect of Novavax’ global vaccine rollout closer than ever, B. Riley analyst Mayank Mamtani believes that amid the Omicron spread, the situation could “boost ‘2373 uptake curves, both as a primary vaccination series and as a booster.”
Despite the recent run and the company’s vaccine delivering “best-in-class safety, immunogenicity and efficacy data, including against variants of concerns and in booster setting,” relative to peers Moderna and Pfizer, NVAX shares have been highly volatile this year due to regulatory and manufacturing concerns. However, these could soon be put to rest. The company’s partnership with global vaccine manufacturing leader Serum Research Institute of India (SRII), appears to be bearing fruit based on the “robust” CMC data recently generated. This should also help the company with the U.S. EUA filing which should be completed before the end of the year.
“As a result,” Mamtani summed up, “We aren’t necessarily concerned with both the demand and supply of ‘2373 in the long-term and continue to believe in upward revision to Street’s 2022+ topline forecasts.”
To this end, Mamtani reiterated a Buy rating for NVAX shares, backed by a $305 price target. This figure implies ~48% upside from current levels. (To watch Mamtani’s track record, click here)
There are 2 other recent Novavax reviews, showing 1 Buy and Hold each, and providing the stock with a Moderate Buy consensus rating. Going by the $249.67 average price target, shares are anticipated to rise ~21% over the one-year timeframe. (See NVAX stock analysis on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
