Novel coronavirus stocks like Novavax (NASDAQ:NVAX) have been rewarding for investors. In fact, when I first weighed in on NVAX stock, it traded at around $15 a share in February. Then it ran as high as $189 for a gain of 1,163% in just six months.
Others vaccine stocks exploded right alongside it. BioNTech (NASDAQ:BNTX) ran from about $33 to nearly $105. Inovio (NASDAQ:INO) rose from around $4 to almost $34. And Moderna (NASDAQ:MRNA) went from $22 to $95.
This all happened on a FOMO — or Fear of Missing Out — effect.
Of course, I understand the scramble. After all, one of the vaccine stocks could eventually hit it big, and virtually stop the spread of Covid-19. And while I’m a fan of those other three as well, NVAX stock remains one of my top picks. Even after running 1,163% higher from my first mention, it remains a buy on the recent pullback.
From a current price of about $86, I still believe it could run to $200 a share.
The Biggest Catalyst For NVAX Stock Has Been Its Vaccine
Of course, NVAX stock’s biggest catalyst has been its vaccine candidate, NVX-CoV2373.
To date, the candidate has already produced impressive results in its early stage clinical trial. It even lined up $1.6 billion in funding from “Operation Warp Speed,” as well as supply deals with Canada and Japan.
Novavax also just reported that it has already enrolled 5,500 participants in its late-stage U.K. study, which is expected to enroll a total of 15,000 people. The company expects for the trial to be full of participants by the close of November. Preliminary data could be out as soon as the first quarter of 2021.
Better yet, the company’s U.S. trials should launch by the end of November as well.
Desperate Need for a Vaccine
Over this past weekend, the U.S. reportedly saw another 143,000 new cases of the novel coronavirus. Some hospitals are, once again, becoming overwhelmed with patients. Many schools have decided to go back to virtual learning. In Denver, where the Covid-19 situation “is looking bad,” there are fears of another stay-at-home order. In fact, El Paso has done so already.
Even worse, at the time of this writing, the number of global cases is now over 44 million, with 1.17 million of those resulting in deaths. In the United States, the case count is up to 8.9 million. India is up over 8 million case. Brazil, up to 5.4 million. France, over 1.2 million.
Dr. Anthony Fauci — the White House’s advisor on the pandemic — said:
“We are living, right now, through a historic pandemic outbreak. And, we are, right now, in a situation where we do not see any particular end in sight […] It’s the perfect storm […] We often talk about outbreaks and pandemics, be they influenza or other pathogens, that have to have a few characteristics that make them particularly formidable. Well, this particular virus has that.”
As we all know, the need for a vaccine is dire. Novavax has a good chance of fulfilling that need. And NVAX stock stands to benefit along the way.
Bottom Line
Cantor Fitzgerald analyst Charles Duncan is among those confident in the potential vaccine, reiterating an “overweight” rating with a $211 price target. Duncan has been reportedly encouraged by the pre-clinical data already released by the company.
What’s more, JP Morgan analyst Eric Joseph recently upgraded the stock to “buy” from “hold” with a price target of $275 a share.
With a desperate need for a novel coronavirus vaccine, as well as impressive results in early stage trials, funding, and supply deals, I’d back up the truck on NVAX stock.
I still believe NVAX could run well above $200 this year.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.
