© Reuters Novavax (NVAX) Tumbles as JPMorgan Cuts Price Target by 80%, Downgrades to Underweight
By Senad Karaahmetovic
Novavax (NASDAQ:) shares are down over 5% today after a JPMorgan analyst downgraded to Underweight from Neutral.
The analyst also slashed the price target by 80% to $27 to reflect softening demand for the company’s Covid-19 vaccine Nuvaxovid.
“Despite the weak print and downward revenue guidance revision for FY22, our read of the recent vaccine dynamic in the EU and US would suggest further guidance cuts are in the offing, while also pointing to mid- and longer-term headwinds to meaningful Nuvaxovid uptake,” he wrote to clients in a note.
Novavax is operating in a difficult environment, where in addition to growing macro headwinds the management’s execution is also attracting attention. Along these lines, the analyst sees “the potential for dilutive pressure to NVAX shares over the next 6-12 months.”
Net-net, the analyst expects to see a period of underperformance from NVAX shares on the back of the challenging fundamentals and the further decline in the COVID trade sentiment.
Novavax stock trades at the lowest levels since May 2020.
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