BofA Reiterates Hold Rating on Novavax (NVAX) Stock

On May 20, BofA analyst Alec Stranahan reiterated a Hold rating on Novavax, Inc. (NASDAQ:NVAX) stock, setting a price target of $10.

The approval of Nuvaxovid for use in older and high-risk adults will generate around $175 million in milestone payments from Sanofi during Q3 and an additional $50 million in the second half of 2025. Stranahan cited that this will mitigate near-term risks. However, the analyst pointed out that the post-marketing commitments and the need for further trials are already considered in Novavax's guidance, indicating minimal influence on the stock's performance.

As the demand for COVID vaccines remains sizeable among older populations, the stricter labeling may not have a drastic impact on Nuvaxovid's potential market. Overall, the analyst maintains a neutral view on the stock, considering the full potential of Novavax's pipeline remains to be unlocked.

Novavax, Inc. (NASDAQ:NVAX) is a biotechnology firm that is engaged in the discovery, development, and commercialization of vaccines to protect against serious diseases worldwide.

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