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DJ Novavax Has ''Few Levers'' for Covid Vaccine, Says New Bear22-Sep-2022 10:04AM, DJ Novavax Has ''Few Levers'' for Covid Vaccine, Says New Bear -- Barrons.com Angela Palumbo Vaccine maker Novavax has a new bear. JPMorgan downgraded shares to Underweight from Neutral, citing concerns for long-term performance amid poor demand for the company's Covid-19 vaccine. Analyst Eric Joseph also slashed his target price on Novavax (ticker: NVAX) stock to $27 from $132. The company has had a difficult year. Coming into Thursday trading, Novavax stock has cratered 82% so far in 2022. The company slashed its full-year revenue guidance back in August, and posted a disappointing second quarter. Then, earlier this week, Novavax stock, along with those of Covid-19 vaccine developers Moderna (MRNA) and Pfizer (PFE), slid after President Joe Biden said that the "pandemic is over" during an interview with 60 Minutes. Novavax stock is down 9% in Thursday morning trading to $23.48. "Despite the weak second-quarter print and downward revenue guidance revision for [2022], our read of the recent vaccine dynamic in the EU and U.S. would suggest further guidance cuts are in the offing, while also pointing to mid- and longer-term headwinds to meaningful Nuvaxovid uptake," Joseph wrote in a research note. Nuvaxovid is Novavax's Covid-19 vaccine. As of Sept. 22, the seven-day average for daily reported coronavirus cases stood at about 59,000, about a fourth of where they stood in July, as reported in The Wall Street Journal. Joseph wrote that, long term, the demand trend for Covid-19 vaccines is difficult to call, but "innovating to mute the impact of novel variant stains will be key to building or maintaining market share -- an aspect where Novavax, while potentially capable, has struggled to keep pace. Without it, we see few levers for Nuvaxovid to penetrate beyond 5% share." The analyst added that "spotting relatively challenging fundamentals as the broader Covid-19 trade sentiment recedes further to the background, we see Novavax underperforming our broader coverage." |
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