Novavax Swings to a 1Q Loss; Shares Plunge 9%

Shares of Novavax (NVAX) fell almost 9% on Monday May 10 after the biotechnology company reported a loss in the first quarter. However, revenues topped analysts’ expectations. Novavax's net loss Read More... The post Novavax Swings to a 1Q Loss; Shares Plunge 9% appeared first on TipRanks Financial Blog.

Novavax Swings to a 1Q Loss; Shares Plunge 9%

Shares of Novavax (NVAX) fell almost 9% on Monday May 10 after the biotechnology company reported a loss in the first quarter. However, revenues topped analysts’ expectations.

Novavax's net loss for 1Q 2021 came in at $222.7 million or $3.05 per share, compared to a net loss of $26 million or $0.58 per share in 1Q 2020. Analysts were expecting the company to report a loss of $3.60 per share.

Total revenue of $447.2 million surpassed analysts’ expectations of $233.9 million and increased significantly year-over-year from $3 million in 1Q 2020. The reason behind the leap can be attributed to higher development activities related to NVX-CoV2373.

Both research and development expenses and selling, general, and administrative costs surged drastically from $17 million to $593 million and from $9 million to $63 million, respectively, on a year-over-year basis. The massive increase in these expenses was due to the costs incurred from the development of NVX-CoV2373. (See Novavax stock analysis on TipRanks)

Novavax CEO Stanley C. Erck said, "We have secured additional manufacturing and supply agreements, expanding our global supply chain to over 10 countries. In the coming months, we look forward to delivering on critical milestones, including announcing final data from our PREVENT-19 Phase 3 trial, completing our regulatory submissions, evaluating NVX-CoV2373 in younger populations and continuing to develop our booster strategy to address the evolving COVID-19 pandemic."

Following the 1Q results, B.Riley Financial analyst Mayank Mamtani maintained the stock’s price target of $365 (127.4% upside potential) and a Buy rating.

Mamtani commented, “We are particularly encouraged by NVAX's prolonged negotiations with EU, in order to supply for 27 member EU countries, approaching final stages with increased visibility into delivery schedule of the 200 million doses originally agreed upon in preliminary discussions."

The analyst added, “We are encouraged by the recent easing of restrictions for raw material supplies by U.S. government, which has also posed a barrier for CVAC for stockpile build-up (link). Importantly, we anticipate delivery to prioritized nations with committed APAs, i.e., ~300M doses across U.S., Canada, U.K., Australia, and S.K. to take precedence over the incremental supply commitment for EU and Japan.”

Novavax shares have exploded 555.1% over the past year, while the stock still scores a Strong Buy consensus rating, based on 5 unanimous Buys. That’s alongside an average analyst price target of $323, which implies 101.3% upside potential to current levels.

On top of this, TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Novavax, with 8.6% of investors increasing their exposure to NVAX stock over the past 30 days.

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Luminar Partners With Toyota’s Pony.ai To Enhance Safe Autonomous Driving

Luminar Technologies (LAZR) and Toyota (TM) backed self-driving tech firm Pony.ai are joining forces to enhance safe autonomous driving in complex environments. By teaming up with a global leader in Read More... The post Luminar Partners With Toyota’s Pony.ai To Enhance Safe Autonomous Driving appeared first on TipRanks Financial Blog.

Luminar Partners With Toyota’s Pony.ai To Enhance Safe Autonomous Driving

Luminar Technologies () and Toyota () backed self-driving tech firm Pony.ai are joining forces to enhance safe autonomous driving in complex environments. By teaming up with a global leader in lidar hardware and software technology solutions, Pony.ai hopes to accelerate the development of autonomous driving technology.

Pony.ai plans to use lidars made by Luminar in its robotaxis. Lidars, which are a key component in many autonomous vehicles, are laser-based sensors that perceive the surrounding environment as the car maneuvers through the streets. Pony.ai plans to use lidars made by Luminar in its robotaxis.

Pony.ai has already provided more than 220,000 robotaxi rides. The company currently offers its services in Guangzhou, Shanghai, and Beijing in China, as well as in Irvine and Freemont, California.

Pony.ai has also confirmed plans to deploy autonomous fleets across the globe, starting in 2023. The autonomous fleet will come integrated with a Luminar lidar and a slim profile, with the sensors protruding only 10 cm. off the car roof. Last year, Toyota invested $400 million in Pony.ai to accelerate the development of its autonomous driving technology. (See Luminar stock analysis on TipRanks)

“Luminar is in a league of their own when it comes to lidar and shares our belief that delivering autonomous mobility globally will enable a safe and sustainable future. We’re excited to realize that vision together with them,” said Pony.ai CEO James Peng.

In March, Northland Capital market analyst upgraded Luminar to a Buy from a Hold. The upgrade came on the back of the company unveiling a stack of software solutions as part of its strategic partnership with Zenseact.

“Zenseact is supplying Volvo and Luminar will be the supplier for other auto OEMs. We believe this enhances the value of LAZR as most OEMs do not have the wherewithal to develop a full-stack software capability for hands-free highways,” said Richard.

Richard has a $38 price target on the stock, implying 91.34% upside potential to current levels.

Consensus among analysts on Wall Street is a Moderate Buy based on 2 Buy and 3 Hold ratings. The average analyst implies 43% upside potential to current levels.

LAZR scores a 7 out of 10 on TipRanks’ rating system, suggesting it is well-positioned to outperform market expectations.

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The post Luminar Partners With Toyota’s Pony.ai To Enhance Safe Autonomous Driving appeared first on TipRanks Financial Blog.

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