Shares of Novavax (NASDAQ:NVAX) are in the green after the company’s vaccine received a recommendation from the Food and Health Administration’s (FDA) advisory panel yesterday. The panel unanimously voted to recommend the two-dose vaccine for use in the U.S for people aged 18 and above. The vote tallied out to 21-0, with one member voting to abstain. Stock analysts are now all out in force today providing their new NVAX stock price predictions on the news.
Novavax’s vaccine, officially titled NVX-CoV2373, may be suitable for people who are uncomfortable with mRNA vaccines or blood clots associated with the Johnson & Johnson (NYSE:JNJ) vaccine. The FDA states that the NVAX vaccine carries a 90.4% efficiency rate in participants over 18 years old.
To be clear, the FDA has not yet approved the vaccine for emergency use authorization (EUA). However, the agency usually follows its advisory panel’s recommendations. As a result, the FDA could approve Novavax’s vaccine for distribution in the U.S. as soon as this week.
The FDA explained:
FDA will carefully review this and any additional information submitted by the firm as part of its ongoing assessment and prior to authorizing the vaccine for emergency use. The decision to grant an EUA will also take into consideration the discussion of clinical data and voting outcome of the June 7 VRBPAC meeting.
Next up on Novavax’s plate is the Center for Disease Control’s (CDC) advisory meeting to vote on whether or not to recommend use. After that, the CDC will provide on update on whether or not it recommends the vaccine.
With that in mind, let’s take a look at where analysts believe the company will trade next.
NVAX Stock Price Predictions
- Cowen has a price target of $150. Analyst Georgi Yordanov believes that Novavax’s vaccine will receive EUA approval by the end of June or by early July. The analyst adds that the vaccine may increase the risk of myocarditis. Additionally, the vaccine label will likely state the myocarditis risk. Still, he doesn’t expect this to have a significant commercial impact. Meanwhile, Yordanov states that a “major overhang” has been removed from NVAX stock after the advisory panel recommendation.
- Bank of America has a price target of $35. Analyst Alec Stranahan believes that the company’s vaccine has “waning immunity against new variants.” The analyst also has a “bearish view” on the continued use of coronavirus boosters and believers that competitors look “strong relative to what Novavax has shown.” Finally, Stranahan believes Novavax will be left behind in an increasingly crowded market.
- In aggregate, NVAX has an average price target of $151.50 among six firms with coverage of the stock.
On the date of publication, Eddie Pan did not hold (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.