The fourth stock we’re looking at here, Novavax, Inc. (NVAX), is a biotech in the vaccine business. The company’s main product is a vaccine for respiratory syncytial virus, specially, a vaccine to protect newborn infants from the virus and the associated lung disease. The new vaccine, ResVax, failed its first Phase III trial, leading to a sharp drop in the company’s share price.
Novavax shares skyrocketed whopping 40% yesterday, and there’s just one reason why: Yesterday morning, investment banker H.C. Wainwright announced a big price target upgrade on NVAX. The reason? "We think Novavax keeps winning with NanoFlu."
In line with his upbeat outlook, H.C. Wainwright's Vernon Bernardino gives NVAX a $17 price target (up from $10), indicating confidence in an impressive 180% upside. (To watch Bernardino's track record, click here)
Bernardino, writing of Novavax’s future prospects, says, “We made no changes to our models, as we previously believed the near-term focus would be completing an additional Phase 3 ResVax study… We look for share price appreciation to allow successful financings in 2020-2021, positioning Novavax to independently launch commercial NanoFlu worldwide. We think NanoFlu can achieve $1.7B in annual sales by 2028.”
Like many biotech firms, Novavax combines high upside with high risk. The stock is selling for just $6 per share – but the average price target is $29, giving the stock an eye-opening upside potential of 394%. The analyst consensus rating of Strong Buy is based on 4 buys assigned in recent days, after the company announced the second Phase III trial for ResVax.
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