$NVAX Being Downgraded, Will Fell More or Going to Rebound?
Well, the weight loss drug I've been following, $Novavax(NVAX)$ , has had its target price downgraded by $JPMorgan Chase(JPM)$, plunging 25% and down breaking through the trend line.
JP Morgan analyst Joseph said: "Due to the company's cash per share forecast of $6 by the end of 2025, but with few foreseeable value-added proprietary channels, we will readjust our rating for NVAX shares to reduce holdings and give a target price of $8."
Seems, there is still an expectation of a 30% drop from the current $12.
Why was $Novavax(NVAX)$ beding downgraded?
JP Morgan analyst Eric Joseph pointed out that since May, when $Novavax(NVAX)$ cooperated with $Sanofi SA(SNY)$ to launch the protein-based COVID-19 vaccine Nuvaxovid, the company's performance has been significantly better than other companies (an increase of more than 250%, while the entire biotechnology sector increased by 12%).
This deal prompted JP Morgan to upgrade the stock rating at the time, as the company received $500 million from the French pharmaceutical company as part of the cooperation to bundle Nuvaxovid with Sanofi's (SNY) influenza franchise.
However, after further reviewing the impact of the agreement and the prospects for demand for COVID-19 and influenza vaccines, we believe that the current level greatly overestimates the potential economic/revenue that Nuvaxovid brings to the company.
$Novavax(NVAX)$ will release its Q2 earnings results on August 6th.
Zacks expects Novavax to earn $1.13 per share this quarter, an increase of 94.8% from the same period last year. The Zacks consensus forecast has remained unchanged in the past 30 days.
For this fiscal year, the market consensus expects earnings of $0.49, an increase of +109.1% compared to the previous year.This expectation has remained unchanged in the past 30 days.
On the Tiger APP, Wall Street expects Novavax's second quarter earnings per share to reach $1.67, and profits in the past two quarters are still below expectations.
As of press time, $Novavax(NVAX)$ rose 2% in pre-market trading. Is this a small rebound? Or will it fall more in the future?
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Back to fair value…nice