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ResVax, NanoFlu Prospects Earn Novavax A Double Upgrade

ResVax, NanoFlu Prospects Earn Novavax A Double Upgrade

Novavax, Inc. (NASDAQ: NVAX) has fallen 31 percent over the last six months, mirroring waning investor excitement over a coming pivotal trial. Amid the heavy sell-off, one analyst sees a buying opportunity.

The Analyst

JPMorgan analyst Eric Joseph upgraded Novavax from Underweight to Overweight and sees fair valuation between $2 and $2.25.

The Thesis

Novavax’s PREPARE Phase 3 trial is set to release pivotal data on ResVax in the first quarter. JPMorgan expects the immunization for infant RSV to yield positive results driving 50-100-percent-plus upside.

While a failure could drag the stock down 80 percent, Joseph said he considers such an outcome less likely. (See his track record here.) 

“Looking beyond the Phase 3 readout, we believe positive PREPARE data would support broader development to additional at-risk populations and their inclusion in the model." 

If successful, ResVax would tap into a $650 million to $850 million opportunity in the U.S., by Joseph’s estimates.

The analyst projects a $200-million peak opportunity in NanoFlu, which is set to enter a Phase 2 study in the third quarter and release top-line data in the first. If successful, Novavax could pursue registration in the second half of next year.

Price Action

Novavax shares were up 6.46 percent at $1.56 at the time of publication Friday. 

Related Links:

Eeny, Meeny, Miny, Moe: JPMorgan Downgrades 4 Biotechs In Portfolio Rebalancing

Novavax Shares Rise 30% On Positive Data, But Risks Remain

Latest Ratings for NVAX

Feb 2021B. Riley FBRMaintainsBuy
Feb 2021Cantor FitzgeraldMaintainsOverweight
Feb 2021B. Riley FBRMaintainsBuy

View More Analyst Ratings for NVAX
View the Latest Analyst Ratings


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