Analyst Alec Stranahan of Bank of America Securities reiterated a Hold rating on Novavax (NVAX – Research Report), reducing the price target to $10.00.
Alec Stranahan has given his Hold rating due to a combination of factors affecting Novavax’s current market position. The recent comments by Robert Kennedy Jr. have introduced uncertainty regarding the company’s COVID-19 vaccine, particularly following a delay in the Biologics License Application (BLA) approval. This delay poses a significant risk, as it may prevent Novavax from receiving a $175 million milestone payment from Sanofi, which was anticipated upon BLA approval.
Additionally, the lack of formal BLA approval adds regulatory challenges to Novavax’s COVID-19/influenza combination programs, which could impact future development and milestone payments. Despite the mature data package for Nuvaxovid, the uncertainty surrounding the approval process and the company’s internal and partnered programs has led to a cautious outlook. Consequently, Stranahan has reiterated a Neutral stance while adjusting the price objective to $10, reflecting updated expectations for the company’s combination vaccine programs.
Stranahan covers the Healthcare sector, focusing on stocks such as Candel Therapeutics, TG Therapeutics, and Beam Therapeutics. According to TipRanks, Stranahan has an average return of -17.4% and a 32.39% success rate on recommended stocks.
In another report released on April 3, TD Cowen also maintained a Hold rating on the stock with a $9.00 price target.