Analyst Alec Stranahan from Bank of America Securities reiterated a Hold rating on Novavax (NVAX – Research Report) and keeping the price target at $12.00.
Alec Stranahan has given his Hold rating due to a combination of factors surrounding Novavax’s current strategic position and future prospects. The company’s recent earnings update highlighted a shift in focus towards expanding its early-stage portfolio and forming partnerships, which is seen as a positive move towards greater capital efficiency. However, the company’s pipeline still requires further derisking, and the anticipated phase 3 data for its CIC and standalone flu vaccines in mid-2025 is expected to be a significant driver for the stock in the near term.
Additionally, while the transfer of Nuvaxovid’s commercial responsibility to Sanofi is expected to generate cash through milestone payments, the path to revenue breakeven by 2027 remains uncertain. The restructuring and focus on new areas such as avian flu, RSV, and other vaccine candidates are promising, but require clinical validation before they can be fully valued by investors. These factors contribute to the Hold rating, as the potential upside is balanced by the risks and uncertainties in the pipeline development.
In another report released on February 24, TD Cowen also maintained a Hold rating on the stock with a $9.00 price target.
NVAX’s price has also changed moderately for the past six months – from $11.150 to $7.060, which is a -36.68% drop .
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