Have you noticed that Novavax (NASDAQ:NVAX) stock is back on the rise? The biotech stock, which has a novel coronavirus vaccine in Phase 3 trials, is up more than 33% in the last month.
While it may be disappointing to some investors that Novavax wasn’t the first company to the finish line in getting a Covid-19 vaccine to market, there’s plenty of bullish sentiment left for NVAX stock.
J.P. Morgan analyst Eric Joseph recently wrote that he sees NVAX stock with greater than an 80% upside. He issued an overweight rating on the stock and set a price target at $215.
“We continue to view NVX-CoV2373 as having a well-differentiated positioning in the overall COVID-19 vaccine space, both clinically and logistically, and believe current levels under-reflect its long-term commercial potential,” he wrote.
To be sure, Novavax has come a long way in just one year.
NVAX Stock: Humble Beginnings
Remember, Novavax wasn’t highly thought of at the beginning of the year. The stock traded at less than $5 per share.
In May, the Maryland-based company even executed a 1-for-20 reverse stock split, acknowledging that it was needed in part to continue trading as part of the Nasdaq composite.
But this summer, the stock really took off, reaching a high of more than $189 per share as the company pressed forward with its Covid-19 vaccine candidate. NVX-CoV2373 is a protein-based vaccine that was engineered from the genetic sequence of the coronavirus itself.
The stock topped out in August and began to slip — which was to be expected, considering the stock was essentially up more than 4,000% at that point. When I wrote about NVAX stock a month ago, the stock was around $90. I suggested that there was a good opportunity for investors who missed out on the first wave to buy on the dip.
Since that article, Novavax is up more than 42%.
A Global Perspective
There are two major things driving Novavax share these days.
First, there’s never been more interest in vaccines than right now, as Covid-19 is killing as many as 3,000 daily in the U.S. People are beginning to realize that we’re going to need more than one or two companies to provide the hundreds of millions of doses that will be needed in the U.S. alone. That is, if we want to get the pandemic under control next year.
Second, Novavax is doing a solid job working with customer countries around the world to push its vaccine once its approved. It has a non-binding Heads of Terms document with Australia to supply 40 million doses of NVX-CoV2373.
The company also has supply agreements with the U.K. and, of course, the U.S., for its vaccine candidate.
Novavax announced recently that it has already given the vaccine to more than 20,000 people as part of its late-stage efficacy trials in the U.K. and South Africa. The company plans to begin its Phase 3 trials in the U.S. and Mexico in the coming weeks, according to Novavax CEO Stanley Erck.
“Novavax is in a leading position to significantly contribute to the need for safe and efficacious vaccines that will ultimately end the worldwide COVID-19 pandemic. We continue to make meaningful progress as we work to test, manufacture and ultimately deliver NVX-CoV2373 with unprecedented speed, as well as put partnerships in place that would ensure widespread and equitable access worldwide.”
The Bottom Line
I’m not surprised that Novavax stock is rebounding from its recent lows. The stock will likely be volatile over the coming quarters as it and other biotech companies work on their Covid-19 candidates.
But, as I pointed out a month ago, the company’s approach makes NVAX stock worthy of consideration on your watch list. Novavax has a “B” grade and a buy recommendation in my Portfolio Grader right now.
On the date of publication, Louis Navellier had a long position in NVAX. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation.