Novavax’s Strategic Positioning and Regulatory Milestones Drive Buy Rating

Analyst Thomas Shrader of BTIG maintained a Buy rating on Novavax (NVAX – Research Report), retaining the price target of $19.00.

Thomas Shrader has given his Buy rating due to a combination of factors related to Novavax’s recent developments and market positioning. The approval of Nuvaxoid, despite some conditions, marks a significant milestone for the company, as it aligns with the evolving regulatory landscape post-pandemic. The conditions attached to the approval are expected to be flexible, which could benefit Novavax as the company adapts to the changing environment.
Additionally, the myocarditis risk associated with vaccines is a known factor, and Novavax’s flagship adjuvant, Matrix-M, is central to their strategy moving forward. The potential for a new Phase IV safety detection system by the FDA could ultimately be advantageous for Novavax, allowing them to better define and manage any risks associated with their products. Furthermore, the streamlined process for updating their JN1-Omicron variant vaccine, based on the established safety of Nuvaxoid, presents a promising opportunity for the company. These elements, combined with a favorable valuation using a discounted cash flow model, underpin Shrader’s Buy rating for Novavax.