On May 20, BofA analyst Alec Stranahan reiterated a Hold rating on Novavax, Inc. (NASDAQ:NVAX) stock, setting a price target of $10.
The approval of Nuvaxovid for use in older and high-risk adults will generate around $175 million in milestone payments from Sanofi during Q3 and an additional $50 million in the second half of 2025. Stranahan cited that this will mitigate near-term risks. However, the analyst pointed out that the post-marketing commitments and the need for further trials are already considered in Novavax's guidance, indicating minimal influence on the stock's performance.
A person holding a syringe filled with a vaccine, implying the companys impact on health and wellbeing.
As the demand for COVID vaccines remains sizeable among older populations, the stricter labeling may not have a drastic impact on Nuvaxovid's potential market. Overall, the analyst maintains a neutral view on the stock, considering the full potential of Novavax's pipeline remains to be unlocked.
Novavax, Inc. (NASDAQ:NVAX) is a biotechnology firm that is engaged in the discovery, development, and commercialization of vaccines to protect against serious diseases worldwide.
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