Novavax Inc (NVAX)

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Novavax Poised for U.S. Market Capture and Cost Efficiency Gains: A Resounding Buy Rating

https://markets.businessinsider.com/news/stocks/novavax-poised-for-u-s-market-capture-and-cost-efficiency-gains-a-resounding-buy-rating-1033671123

B.Riley Financial analyst Mayank Mamtani reiterated a Buy rating on Novavax (NVAX – Research Report) today and set a price target of $23.00.

Mayank Mamtani has given his Buy rating due to a combination of factors surrounding Novavax’s strategic positioning and operational progress. He highlights the company’s readiness to capture the U.S. commercial COVID market for the upcoming Fall ’24 season, strengthened by finalized retail pharmacy contracts covering over 17,000 locations—a significant increase from the prior fiscal year. Additionally, Mamtani notes Novavax’s effective recalibration of its cost structure, which has led to a substantial reduction in operating expenses, and anticipates further cost savings in the future. These improvements in operational efficiency, coupled with the company’s plan to strategically exit most ex-U.S. territories, reinforce the analyst’s positive outlook on Novavax’s stock.

Furthermore, the potential for regulatory and commercial success of Novavax’s late-stage pipeline, particularly the COVID-influenza combination vaccine and stand-alone flu programs, underpins the Buy rating. Mamtani emphasizes the company’s alignment with FDA plans for a single Phase III immunogenicity study, which could expedite the approval process. He also points out the anticipated milestone payments from the partnership with Sanofi, which are expected to bolster Novavax’s financial position. Despite a downward revised FY24 guidance, largely due to the exclusion of future Advance Purchase Agreements (APAs), Mamtani’s analysis suggests confidence in Novavax’s ability to navigate the market and capitalize on its U.S. commercial strategy and pipeline advancements, justifying a Buy rating with a price target of $23.