On May 19, analyst Thomas Shrader of BTIG maintained a Buy rating on Novavax Inc. (NASDAQ:NVAX) and kept a price target of $19.00.
The analyst supported the rating due to the company’s market position and recent developments, including the FDA approval of Nuvaxoid, its COVID-19 vaccine.
A closeup of a vial of the biotechnology company’s vaccines.
The approval marks a significant milestone for Novavax Inc., aligning with the changing regulatory landscape after the pandemic. Since the conditions associated with the approval are anticipated to be flexible, the analyst expects it to benefit the company as it adapts to the changing environment.
The analyst also reasoned that the myocarditis risk associated with vaccines is known, and Novavax Inc.’s (NASDAQ:NVAX) flagship adjuvant Matrix-M is a key factor in their strategy. The company could ultimately benefit from the potential for the Phase IV safety detection system by the FDA, allowing it to manage and better define product risks.
Based on Nuvaxoid’s established safety, the analyst considers the streamlined procedure for updating the JN1-Omicron variant vaccine a promising opportunity for Novavax Inc.. When coupled with a favorable valuation using a discounted cash flow model, these elements support a buy rating for the company.
READ NEXT: 10 Best Debt Free IT Penny Stocks To Buy and 10 Unstoppable Stocks That Could Double Your Money.
