Novavax's Long-Term Outlook Remains Intact, Says Analyst
If there was one coronavirus stock you wanted to back in 2020, it was Novavax (NVAX). The small vaccine maker accrued huge share gains as it went toe to toe Read More... The post Novavax's Long-Term Outlook Remains Intact, Says Analyst appeared first on TipRanks Financial Blog.
If there was one coronavirus stock you wanted to back in 2020, it was Novavax (). The small vaccine maker accrued huge share gains as it went toe to toe with bigger pharma companies in the race to bring a Covid-19 vaccine to market.
But while its candidate NVX-2373 has shown excellent results in clinical studies, Novavax has yet been unable to get the vaccine across the finish line and watched as others gain EUAs and enter the market.
The company announced more delays earlier this week, which investors did not take well. The shares have come under pressure, and closed the week down 25%.
While the previous plan had earmarked a submission to the UK regulators early in Q2, followed by a request for an EUA from the FDA later in the quarter, the company said it will not be ready to submit the filings until the start of Q3. The company has also cited a shortage of raw materials that has halted the process of ramping up manufacturing capacity. Instead of hitting its stride in the third quarter, production will only get up to full speed now by Q4.
For Jefferies analyst Kelechi Chikere, the update implies a “measured rollout in 2021 with a large pickup in the first half of 2022.” However, despite the setback, the analyst thinks the “long-term outlook remains intact.”
“While the delays are clearly disappointing, we remain constructive on the name and see the outlook as promising given the clear high efficacy, clean safety profile, robust data package and optionality for a multivalent and/or CV-19/Flu combo vaccine,” the analyst said. “Investors will be disappointed as it means sales in 2021 are likely to be modest, mRNA vaccines have more time to gain mindshare and more vaccines potentially enter the mkt. While recognizing the NT headwinds, we remain (+) on the mid to long-term outlook for NVAX's CV-19 vaccine program.”
All in all, Chikere rates NVAX a Buy along with a $235 price target. This figure implies ~78% upside potential from current levels. (To watch Chikere’s track record, )
Investors might be disappointed but Novavax still has Wall Street’s backing. The stock boasts a Moderate Buy consensus rating, based on 4 Buys and 2 Holds. At $238.60, the average price target remains upbeat, suggesting the shares will be changing hands for ~80% premium a year from now. (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.
The post Novavax's Long-Term Outlook Remains Intact, Says Analyst appeared first on TipRanks Financial Blog.