Novavax, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Sean Lee CFA from H.C. Wainwright reiterated a Buy rating on the stock and has a $11.00 price target.
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Sean Lee CFA has given his Buy rating due to a combination of factors tied to Novavax’s emerging partnership and licensing strategy. The newly signed Matrix-M adjuvant license with Pfizer, which includes an upfront payment, substantial milestone potential, and tiered royalties, meaningfully underscores external confidence in Novavax’s technology and mirrors favorable economics seen in the prior Sanofi deal. Lee views each licensed application as having the capacity to generate more than a billion dollars over the agreement’s life, supporting a more durable revenue base and enhancing long-term visibility. Additional ongoing evaluations of Matrix-M by multiple pharmaceutical companies, alongside Sanofi’s progress with its CIC vaccine that could trigger sizeable near-term milestones, further bolster the company’s path toward earlier-than-expected profitability.
Sean Lee CFA’s rating is based on a valuation framework that incorporates a risk-adjusted net present value model, using a discount rate aligned with Novavax’s estimated cost of capital and a conservative terminal growth assumption. This analysis yields an enterprise value that, when combined with the firm’s current cash position, supports a 12‑month price target of $11.00 per share, implying meaningful upside from current levels. While Lee acknowledges a range of risks—including clinical, commercial, partnership, financing, legal, and competitive uncertainties—he concludes that the potential upside from the company’s expanding licensing portfolio and milestone/royalty stream outweighs these concerns. Consequently, he reiterates a Buy recommendation on NVAX shares.
Lee CFA covers the Healthcare sector, focusing on stocks such as Novavax, Alphatec Holdings, and Plus Therapeutics. According to TipRanks, Lee CFA has an average return of -1.4% and a 30.05% success rate on recommended stocks.
In another report released on January 13, Cantor Fitzgerald also maintained a Buy rating on the stock with a $18.00 price target.