- Novavax (NVAX) stock has tumbled from its peak price of more than $300.
- The market doesn’t seem to appreciate the company’s progress in getting its Covid-19 vaccine approved abroad.
- Investors should stay the course as the conditions are right for Novavax shares to move higher.
Novavax (NASDAQ:NVAX) seeks to provide novel products to prevent a broad range of infectious diseases. Yet, as many NVAX stock holders are probably aware, the company is best known in the U.S. for developing Covid-19 vaccine NVX-CoV2373.
Novavax’s early shareholders had their moon-shot moment, but it passed quickly as other companies’ Covid-19 vaccines were widely distributed in the U.S.
Yet, investors should remember that Covid-19 is a global problem, and the U.S. isn’t the only market to consider. Indeed, Novavax has marked major milestones in multiple regions abroad.
Besides, Novavax can still make progress in the U.S. In fact, one prominent Wall Street expert anticipates an important event to occur soon in Novavax’s home country.
What’s Happening With NVAX Stock?
When NVAX stock soared to around $330 in February 2021, it felt as if the sky were the limit. However, gravity would soon take hold and the shareholders’ patience would be tested.
Fast-forward to mid-March 2022, and Novavax shares were trading below $100 a piece. Getting back to the triple digits — and just as importantly, staying there — will be crucially important this year.
NVAX stock did perk up recently, due to a development that’s unfortunate for the populace but could benefit Covid-19 vaccine makers. Specifically, it has been reported that the number of Covid-19 cases in China this year so far has already surpassed 2021’s cases there.
Due to rising Covid-19 cases in China, Shenzhen and other cities have been placed back on lockdown. Also, there’s evidently been quarantining happening in Hong Kong. Beyond that, newly confirmed Covid-19 cases have been reported in other regions such as the United Kingdom and Australia.
This is where Novavax can be a global problem solver. As the company points out, NVX-CoV2373 is the first protein-based Covid-19 vaccine authorized in a number of major world markets. These include the European Union, Australia, Canada and Great Britain.
Sustaining the Demand
The recent rise of Covid-19 cases abroad should have Wall Street rethinking its stance on NVAX stock.
Notably, Novavax has already signed advanced purchase agreements in the E.U., the U.K. and Australia. Perhaps with this in mind, Jefferies analyst Roger Song posited that the multi-regional demand for Covid-19 vaccines could work to Novavax’s advantage.
Acknowledging that it’s too early to declare another variant-strain wave while omicron is still dominant, Song nevertheless suggested that “this trend could motivate people to get boosted or vaccinated, potentially accelerating the administration of NVAX’s CV19 vaccine and sustaining the demand for dose delivery.”
In light of this, Song sang an optimistic tune with a “buy” rating on NVAX stock as well as a $198 price target.
Along with that, Song expressed confidence that Novavax would live up to its 2022 revenue guidance, which indicated a range of $4 billion to $5 billion.
What You Can Do Now
Not everyone on Wall Street appreciates Novavax’s progress. Still, at least Song seems to envision Novavax’s global-scale advantages.
Investors should take notice as new Covid-19 cases are discovered in a number of regions abroad. Amid this backdrop, there’s a strong potential for a comeback in NVAX stock.
Therefore, it’s fine to start a stock position in Novavax with a long-term strategy. The company might not dominate the U.S. Covid-19 vaccine market, but there are other areas to conquer around the world.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.