Novavax (NVAX) Stock Falls 6% on Weak Sales Guidance, Analyst Remains Positive

Shares of Novavax (NASDAQ: NVAX) are down more than 6% in premarket trading Tuesday after the biotech company reported fiscal fourth-quarter results.

Novavax reported a Q4 loss per share of $11.18, compared to a loss per share of $2.7 in the year-ago period and analyst consensus of loss per share of $4.33. The company posted Q4 revenue of $222.2 million, down 21% YOY and beating the analyst estimates of $129 million.

Cash and cash equivalents totaled $1.52 billion in the period, compared to $553.4 million in the same period last year.

For FY 2022, Novavax expects revenue in the range of $4 billion to $5 billion, compared to the consensus estimates of $4.74 billion.

“We also remain focused on expanding access to our vaccine through additional regulatory filings and ongoing research to add to our robust body of clinical data,” said Stanley Erck, CEO of Novavax.

Cantor Fitzgerald analyst Charles Duncan reiterated an Overweight rating and raised the price target to $189.00 per share from the prior $174.00.

“Our PT increase is a result of renewed conviction that the company is on track to deliver Nuvaxovid to countries with advanced purchase agreements. These include countries in the EU and Australia, among others, which should result in substantial revenue in the coming quarters. In addition, we see potential upside for additional sales to countries that have yet to grant NVX-CoV2373 (‘2373) an EUA/BLA approval, such as the US,” Duncan said in a note.

By Senad Karaahmetovic | [email protected]

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