Novavax price target lowered to $7 from $9 at JPMorgan

JPMorgan lowered the firm’s price target on Novavax (NVAX) to $7 from $9 and keeps an Underweight rating on the shares. The company’s Q2 beat was driven by the accelerated recognition of deferred revenue, the analyst tells investors in a research note. However, the firm sees the “saga” surrounding the application for Novavax’s COVID-19 vaccine dominating investor attention given eligible milestones from partner Sanofi. JPMorgan expects the shares to re-rate down on the “increasingly onerous vaccine regulatory environment.”