Analyst Alec Stranahan from Bank of America Securities maintained a Sell rating on Novavax and keeping the price target at $7.00.
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Alec Stranahan has given his Sell rating due to a combination of factors impacting Novavax’s market position and future prospects. The recent Advisory Committee on Immunization Practices (ACIP) meeting, although better than expected, did not provide a unique advantage to Novavax’s Nuvaxovid vaccine as all COVID vaccines were grouped together in the recommendations. This alignment with the broader COVID vaccine market, dominated by mRNA vaccines, suggests a challenging path for non-mRNA options like Nuvaxovid.
Additionally, the narrow failure of a vote requiring prescriptions for COVID-19 vaccinations indicates potential hurdles in vaccine uptake, which could affect Novavax’s market performance. The focus on informed consent and long-term safety monitoring by the ACIP may also present barriers to the adoption of Novavax’s combination vaccine programs, such as the CIC program. These factors, combined with the company’s early pipeline not yet adding significant value, contribute to the maintained Underperform rating and a price objective of $7, reflecting a cautious outlook on Novavax’s ability to navigate these challenges.
NVAX’s price has also changed moderately for the past six months – from $7.910 to $8.710, which is a 10.11% increase.