Home World Demand for new crown vaccine tends to weaken, JPMorgan slashes Novavax target price to $27

Demand for new crown vaccine tends to weaken, JPMorgan slashes Novavax target price to $27

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Demand for new crown vaccine tends to weaken, JPMorgan slashes Novavax target price to $27
© Reuters Demand for coronavirus vaccine weakens, JPMorgan slashes Novavax (NVAX.US) price target to $27

Zhitong Finance APP learned that Novavax Pharmaceuticals (NASDAQ: ) (NVAX.US) shares fell more than 7% in pre-market trading on Thursday, after Wall Street JPMorgan Chase named the Maryland-based new crown drug company. The vaccine maker’s stock rating was downgraded to “underweight” from “neutral” and the price target was slashed to $27 from $132, citing the company’s bleak long-term outlook, among other reasons.

In addition to the updated analytical model, JPMorgan expects a dim demand outlook for the company’s coronavirus vaccine Nuvaxovid, the first protein-based coronavirus vaccine approved by U.S. regulators this year.

Novavax reported weak second-quarter financial results and lowered its 2022 revenue forecast in August. Citing recent COVID-19 vaccinations in the U.S. and the European Union, JPMorgan Chase forecasts a further downward revision to the sales outlook amid mid- to long-term pressure on market demand for the Nuvaxovid vaccine.

JPMorgan cites balance sheet pressure as the main reason, expects Novavax share price to be diluted over the next 6-12 months as the company enters a period dominated by execution rather than catalysts period.

JPMorgan set a price target of $27 for Novavax, well below its previous price target of $132 per share. JPMorgan also expects the company to underperform the industry as a whole as the market panic caused by the new crown outbreak cools sharply.

Back in May 2021, JPMorgan downgraded Novavax to “neutral” from “overweight” after the company expected a delay in the launch of its new coronavirus vaccine candidate.

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As of press time, Novavax fell 5.33% to $24.490 in premarket trading.

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