Alec Stranahan, an analyst from Bank of America Securities, reiterated the Sell rating on Novavax. The associated price target remains the same with $7.00.
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Alec Stranahan has given his Sell rating due to a combination of factors influencing Novavax’s current and future performance. The company has initiated a cost-cutting strategy by consolidating operations and transferring assets to AstraZeneca, which aligns with its goal of becoming more cost-effective. However, these savings were already anticipated in the company’s future guidance and are not expected to significantly impact the overall outlook.
Despite these efforts, Novavax faces several challenges that contribute to the Sell rating. The demand for COVID-19 vaccinations has decreased significantly year-over-year, particularly affecting Novavax’s Nuvaxovid. Additionally, negative news may continue to affect market sentiment, and there is a possibility of stricter requirements for seasonal vaccines. These factors, combined with the company’s financial projections and valuation metrics, support the Underperform rating and the price objective of $7.00.
According to TipRanks, Stranahan is a 3-star analyst with an average return of 2.1% and a 53.44% success rate. Stranahan covers the Healthcare sector, focusing on stocks such as Janux Therapeutics Inc, Agios Pharma, and Novavax.
In another report released on October 17, Citi also maintained a Sell rating on the stock with a $6.00 price target.