Novavax (NASDAQ:NVAX) stock gained over 21% in yesterday’s regular trading session. Shares rallied after the U.S. Food and Drug Administration (FDA) disclosed that its advisers would soon vote on new COVID-19 booster shots. The vote, scheduled for Wednesday, will determine if the boosters should target the JN.1 variant, which is currently dominant in the U.S.
According to the FDA’s staff, vaccine manufacturers developing new booster shots might need to consider targeting one of the JN.1 subvariants, such as KP.2. This is because if the virus continues to evolve further, the vaccine could become potentially ineffective.
In May, NVAX disclosed that it could offer a COVID-19 vaccine, targeting the JN.1 variant, in the United States, pending regulatory approval. Since NVAX uses a more traditional protein-based vaccine, it has a longer production timeline. Conversely, manufacturers of messenger RNA-based vaccines, such as Moderna (MRNA), as well as Pfizer (PFE) and its partner BioNTech (BNTX), can develop these shots more rapidly.
Is NVAX Buy or Sell?
Overall, Wall Street is cautiously optimistic about Novavax stock. It has a Moderate Buy consensus rating based on two Buy and three Hold recommendations. The analysts’ average price target on NVAX stock of $17.50 suggests a downside of 3.95%. Shares have gained 279.6% year-to-date.
