Novavax stock fell after BofA’s bearish call

Novavax Inc. Shares of NVAX,
-13.22%
BofA Securities analyst Alec Stranahan advised investors to avoid the COVID-19 vaccine maker, citing a bearish outlook on continued booster use and respiratory syncytial virus (RSV) and increased competition in the flu market. Stranahan has started coverage of NovaVax in low performance and with a stock price target of $ 35, which means a fall of about 34% from the current level. The stock has fallen 62.8% so far this year, and fell 83.3% from its post-covid record of $ 319.93 on February 8, 2021, even as the Food and Drug Administration is set to meet on June 7 to review Novavax’s COVID-19 vaccine candidates, among others. Approved for use in several countries. “Despite recent pullbacks, we see room for share trading below the meaningful compliance of our long-term Nuvaxovid expectations … Our bearish outlook on continued C-19 booster use, unclear advantages as different alternatives, and declining new variants (e.g., Immunity against Omicron), “Stranahan wrote in a note addressed to clients. “Resolutions regarding the approval of flu, RSV and malaria are still open questions, these markets are becoming increasingly crowded and there are stronger competitor data than what NovaVax has shown.”

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