Novavax stock price target raised to $11 from $10 at H.C. Wainwright

Investing.com - H.C. Wainwright raised its price target on Novavax (NASDAQ:NVAX) to $11.00 from $10.00 on Friday, while maintaining a Buy rating on the stock. The company, currently valued at $1.36 billion, trades at an attractive P/E ratio of 3.26x and shows positive momentum with a 14.57% return over the past six months. According to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value metrics.

The price target increase follows Novavax’s October 22 announcement that it has reached an agreement to transfer a Maryland facility to AstraZeneca (NASDAQ:AZN). Under the agreement, Novavax will receive $60 million in cash over the next couple of quarters. InvestingPro data shows the company maintains a healthy current ratio of 2.36x, with liquid assets exceeding short-term obligations.

The facility transfer is part of Novavax’s recent efforts to consolidate operations, shifting focus to research and development and license agreements rather than manufacturing and commercial sales.

According to Novavax management, the agreement is expected to generate savings of approximately $230 million over the next 11 years from lower lease liabilities and reduced operating costs.

The company will record a non-cash impairment charge of approximately $96-98 million in the third quarter of 2025 as a result of this transaction.

In other recent news, Novavax, Inc. has announced several significant developments. The company has signed definitive agreements to consolidate its Maryland facilities, which will provide $60 million in cash and is expected to save approximately $230 million over 11 years through reduced lease expenses and facility operating costs. Additionally, Novavax has received a $25 million milestone payment from Sanofi after transferring marketing authorization for its COVID-19 vaccine, Nuvaxovid, to Sanofi in the European Union. This agreement allows Sanofi to handle all commercial and regulatory activities for the vaccine in the EU market. Furthermore, Novavax expanded its partnership with Sanofi to include the use of its Matrix-M adjuvant in Sanofi’s pandemic influenza vaccine candidate program. In Japan, Novavax received a milestone payment from Takeda following the approval of its COVID-19 vaccine, Nuvaxovid, for use in various age groups. Meanwhile, Shah Capital, a major shareholder, has urged Novavax’s board to consider a strategic review for a potential sale due to what it describes as persistent underperformance and execution failures. These recent developments highlight Novavax’s ongoing strategic efforts and partnerships.

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