Wedbush Assumes Novavax (NVAX) at Outperform

Wedbush initiated coverage on Novavax (NASDAQ: NVAX) with an Outperform rating and a price target of $10.00 (prior $12.00).

Analyst Heather Behanna said, "Novavax’s analyst day next week should provide clarity on timelines for a busy 2015. Novavax is gearing up for three trials for its RSV vaccine program by year end; it has begun a proof-of-concept study for maternal immunization and will initiate studies in both pediatric and elderly populations. A dose confirmation study of its retooled quadrivalent flu vaccine will also be initiated this year; all four studies should read out data in 2015, driving value for Novavax."

"We arrive at our price target applying a 5x multiple to RSV US peak sales in 2022 and a 15x multiple on royalties for ex-US RSV revenue and worldwide flu vaccine revenue in 2022, discounted by 25%. Our change in validation methodology and refinement of regulatory timelines accounts for our price target change," she added.

For an analyst ratings summary and ratings history on Novavax click here. For more ratings news on Novavax click here.

Shares of Novavax closed at $4.59 yesterday.

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