Novavax share price falls 5% as BofA starts to underperform and sees 40% downside risk

By Senad Karaahmetovic

Bank of America analyst Alec Stranahan launched research coverage on Novavax (NASDAQ:) with an underperform rating and a price target of $35.00 per share, signaling a 40% downside risk based on yesterday’s closing price of $58.43.

Novavax’s share price is down more than 60% year-to-date, fueled by subdued expectations around COVID-19 and seasonal flu, as well as tighter financial conditions. Despite such a steep drop in NVAX shares, the analyst sees “room for the shares to trade even lower.”

Its position is based on “our long-term expectations regarding Nuvaxovid [that are] significantly below consensus (~$1.2B in 2024+; -$800M consensus) given our bearish view of continued C-19 booster use, benefits unclear as heterologous option and waning immunity to new variants (i.e. Omicron). Resolving influenza, RSV and malaria approval also remain open questions, with these markets becoming increasingly crowded and data from emerging competitors looking strong compared to what Novavax has shown,” Stranahan said. to its customers.

The analyst added that he could be wrong in the event of greater initial adoption in the United States and the rest of the world regarding C-19 sales, or sustained long-term use. Additionally, NanoFlu’s full approval could “add another $15 to our purchase order.”

Novavax stock price is down 5.6% today.

Karen J. Nelson