TD Cowen analyst Steve Scala maintained a Hold rating on Novavax (NVAX – Research Report) today and set a price target of $9.00.
Steve Scala has given his Hold rating due to a combination of factors surrounding Novavax’s current market position and strategic outlook. The company’s Matrix-M platform has shown promise, particularly with its COVID-19 vaccine, which has gained emergency use authorization and attracted a partnership with Sanofi. However, despite these advancements, there are ongoing concerns about execution and competitive risks that could impact the company’s ability to capitalize on its innovations.
Novavax’s refined strategy post-Sanofi deal focuses on four key value drivers, including the Sanofi partnership and the development of a flu/COVID combo vaccine. While these initiatives are promising, the uncertainties in execution and the competitive landscape create a cautious outlook. The anticipated sales from the Sanofi partnership are significant, but the overall market conditions and regulatory challenges contribute to the Hold rating, reflecting a balanced view of potential growth against existing risks.
In another report released on February 11, Bank of America Securities also reiterated a Hold rating on the stock with a $12.00 price target.