Novavax Soars 80% After COVID-19 Vaccine Funding and Earnings

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B Riley FBR analyst Mayank Mamtani maintained a Buy rating and hiked the price target from $29 to $43.

The CEPI funding announcement comes ahead of Novavax’s presentation of compelling preclinical immunogenicity data at the World Vaccine Congress Wednesday, B. Riley FBR analyst Mamtani said in a Tuesday note.

The CEPI funding for Novavax, along with the $483 million in BARDA funding for Moderna Inc
MRNA 5.05%
, supports the rationale that pursuing alternate vaccine approaches ensures a high likelihood of COVID-19 vaccine availability next year, the analyst said.

Mamtani attributed the price target hike to expectations for the vaccine to enter the market in the second half of 2021 and utilization in high-risk elderly populations in the near-term.

The vaccine will subsequently expand to a sizable subset of the adult population globally over a multiyear period, according to B. Riley FBR.

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