Demand for new corona vaccine tends to weaken, JPMorgan cuts Novavax target price to $ 27

© Reuters Coronavirus vaccine demand weakens, JPMorgan cuts Novavax (NVAX.US) price target to $ 27

The Zhitong Finance APP learned that shares of Novavax Pharmaceuticals (NASDAQ ūüôā (NVAX.US) fell more than 7% in pre-market trading Thursday after Wall Street JPMorgan Chase named the new pharmaceutical company with based in Maryland. it was downgraded to “underweight” from “neutral” and the price target was reduced to $ 27 from $ 132, citing, among other reasons, the company’s gloomy long-term outlook.

In addition to the updated analytical model, JPMorgan predicts a poor demand outlook for the company’s Nuvaxovid coronavirus vaccine, the first protein-based coronavirus vaccine approved this year by U.S. regulators.

Novavax reported weak financial results in the second quarter and lowered its 2022 revenue forecast in August. Citing recent COVID-19 vaccinations in the United States and the European Union, JPMorgan Chase expects a further downward revision of sales prospects amid medium- and long-term pressure on market demand for the Nuvaxovid vaccine.

JPMorgan cites balance sheet pressure as the main reason, it expects the Novavax share price to be diluted over the next 6-12 months as the company enters a period dominated by execution rather than catalyst period.

JPMorgan has set a price target of $ 27 for Novavax, well below its previous price target of $ 132 per share. JPMorgan also expects the company to underperform the industry as a whole as the market panic caused by the new crown outbreak cools down sharply.

In May 2021, JPMorgan downgraded Novavax to “neutral” from “overweight” after the company expected a delay in the launch of its new coronavirus vaccine candidate.

As of press time, Novavax was down 5.33% to $ 24,490 in pre-market trading.

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