Novavax downgraded to Underperform at BofA on ‘murky outlook’

As previously reported, BofA downgraded Novavax (NVAX) to Underperform from Neutral with a price target of $7, down from $9, citing the recent share movement and “increasingly murky outlook” for Novavax’s key drivers. Sanofi’s (SNY) commercialization of the Nuvaxovid COVID-19 vaccine may face hurdles to meaningful revenue growth with a restricted U.S. label and continued rocky COVID sentiment, while the firm expects the higher burden of proof and cost under the new FDA framework may raise the bar for signing new partnerships, the analyst tells investors.