Why Is Novavax Stock Rising This Week?

NVAX stock - Why Is Novavax Stock Rising This Week?

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Pharmaceutical company Novavax (NASDAQ:NVAX) had a chance to become a game-changer in the industry, but the delay in U.S. Food and Drug Administration (FDA) approvals has led the stock to suffer. NVAX stock had a tough start to 2022 despite the high hopes of investors. 

The stock was trading at $277 in September last year when the pandemic was at its peak. However, the decline has been huge. NVAX stock lost 69% of its value over a year to now trade at $58. This has led to frustration amongst investors who were hoping for stellar revenue numbers from vaccine sales. During my previous coverage of the stock, I mentioned the declining opportunities due to the approval delays. The stock was trading at the same level at that time. 

However, the stock’s rebound began last week and has continued into this week for two reasons. The FDA has announced its plans to review Novavax’s filing for the Emergency Use Authorization (EUA). This has led to heightened optimism about the demand for Covid-19 vaccines in general. The meeting is scheduled for Jun. 7 and it is the last hope for the vaccine maker to make the most of the pandemic. However, there is more likelihood of approval. If you want to make the move, now is the time. The approval will push the stock higher. Just the news of the meeting has helped the stock move in an upward direction. Additionally, Georgi Yordanov, a Cowen (NASDAQ:COWN) analyst, gave an “outperform” rating to NVAX stock with a target price of $150 after the announcement. 

Another reason for the upward trend is the quarterly results that will be announced on May 9. I believe they will beat expectations. The company started shipping out deliveries to several countries in this quarter and it will reflect on the bottom line. Analysts expect revenue of $845.2 million. Novavax has projected $4 billion to $5 billion in full-year revenue. 

While the company waits for a green light for its vaccine, it is time to take a small position in NVAX stock to make the most of the upside in the coming weeks. 

On the date of publication, Vandita Jadeja 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.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.


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