Wedbush Initiates Coverage Of Novavax With Outperform Rating And $6 Price Target

In a report published by Wedbush, it is initiating coverage of Novavax NVAX with an Outperform rating and $6 price target.

Wedbush said that Novavax was recently awarded a $97 million (potentially $179 with all options) BARDA contract to fund manufacturing capacity and clinical development of the company's pandemic and seasonal influenza vaccines. The award will fund three clinical trials for pandemic influenza vaccines as well as two seasonal influenza candidates in a Phase II dose ranging trial and a Phase III registration trial. A marketed seasonal flu product is expected in 2014. “Initiating coverage with an OUTPERFORM rating and $6 price target. We arrive at our $6 price target by applying an 11x multiple to our 2015 estimate of net sales of the company's VLP vaccine discounted back 5 years at 20% and adding the net present value of expected cash per share in 2015, less current cash per share.”

Novavax closed yesterday at $2.56.