Citi Initiates Coverage of Novavax (NVAX) With a Sell Rating

Novavax Inc. (NASDAQ:NVAX) is one of the 13 Cheap Healthcare Stocks with Huge Upside Potential. On June 17, Citi initiated coverage of Novavax Inc. (NASDAQ:NVAX) with a Sell rating and a $6 price target.

The firm acknowledged that vaccines are a “key cornerstone” to global health, and that Novavax Inc. (NASDAQ:NVAX) could contribute to the development of new and innovative vaccines through its innovative technologies.

However, the analyst also told investors in a research note that establishing a clear path to success for Novavax Inc. (NASDAQ:NVAX) is proving challenging due to several factors.

These include the company’s “overwhelming concentration” in respiratory vaccines, an area that is continually undergoing decline in vaccination rates with several entrenched players. In addition, healthcare policies are “in flux” and generally “not encouraging” towards vaccines, further supporting the Sell rating.

Novavax Inc. (NASDAQ:NVAX) is a biotechnology company that discovers, develops, and commercializes recombinant vaccines.

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Disclosure: None. This article is originally published at Insider Monkey.