Steve Scala, an analyst from TD Cowen, maintained the Hold rating on Novavax (NVAX – Research Report). The associated price target remains the same with $9.00.
Steve Scala has given his Hold rating due to a combination of factors surrounding Novavax’s current regulatory and market position. The company is awaiting FDA action on its Biologics License Application (BLA) for its COVID-19 vaccine, which has been developed in partnership with Sanofi. While Novavax has responded to all FDA inquiries and believes its application is ready for approval, the delay in FDA’s decision introduces uncertainty.
Despite this, the commercial impact of receiving full FDA approval is considered incremental, as the company already operates under an Emergency Use Authorization (EUA). Moreover, Novavax’s management emphasizes that contracting is more crucial than BLA approval for commercial success. Encouragingly, healthcare professionals and payors have shown confidence in the vaccine’s market potential, predicting significant market share gains by 2028. However, until the FDA’s decision is finalized, Scala maintains a cautious stance with a Hold rating.