Bank of America has adjusted its outlook on Novavax (NVAX, Financial), reducing its price target from $12 to $10 while maintaining a Neutral rating on the stock. This comes in the wake of a steep decline in Novavax’s share value, which has plummeted over 21%. The downturn follows comments made by the Secretary of the Department of Health and Human Services, Robert Kennedy Jr., who recently expressed reservations regarding the company's COVID-19 vaccine, Nuvaxovid, due to a postponed Biologics License Application (BLA) approval.
The delay in securing BLA approval poses a significant threat to Novavax's financial prospects, particularly in terms of a crucial milestone payment. The company faces the risk of missing out on a $175 million payment from Sanofi (SNY), which is contingent upon the BLA approval. Although the data supporting Nuvaxovid is largely complete, given its widespread use to date, the full implications of the delay on the approval process remain uncertain, potentially affecting planning for the 2025/2026 vaccination seasons.
As stakeholders await further developments, Novavax's future hinges on clarifying these regulatory hurdles and securing its position in the competitive vaccine market.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Novavax Inc (NVAX, Financial) is $17.67 with a high estimate of $25.00 and a low estimate of $9.00. The average target implies an upside of 238.44% from the current price of $5.22. More detailed estimate data can be found on the Novavax Inc (NVAX) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Novavax Inc's (NVAX, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Novavax Inc (NVAX, Financial) in one year is $4.98, suggesting a downside of 4.6% from the current price of $5.22. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Novavax Inc (NVAX) Summary page.
