Novavax Stock Rallies On Positive News From Japan
Shares of Novavax gained strong upside momentum and moved to multi-month highs after Takeda Pharmaceutical stated that Japan agreed to buy 150 million doses of COVID-19 vaccine which will be produced using Novavax technology. The vaccine will be produced in Japan.
In my previous article on Novavax, I noted that the market has quickly managed to shrug off concerns about the company’s problems in the U.S. and focused on its potential in the international market.
At that point, it looked that good news may come from India as the country was reportedly considering an approval of Novavax vaccine without emergency use authorization in the U.S. However, it turned out that Japan became a big market for Novavax, and analysts will have to re-evaluate their forecasts.
What’s Next For Novavax Stock?
Analyst estimates for Novavax have moved lower in recent weeks. Currently, analysts expect that the company will report a loss of $10.29 per share in 2021. In 2022, Novavax is projected to report a profit of $32.3 per share so the stock is trading at just 8 forward P/E.
This is cheap, but the company has experienced various problems and delays which explains the cheap valuation in comparison with peers.
That said, it’s important to note that Novavax stock remained a part of a “vaccine trade” together with more successful companies like Moderna and BioNTech despite the company’s problems.
Recent market action indicates that traders remain ready to buy vaccine stocks. For example, Moderna stock was not harmed by the problems in Japan where the company had to recall three batches of its coronavirus vaccine after they were contaminated with stainless steel.
In this bullish market environment, Novavax stock has a good chance to gain additional upside momentum unless there is another material delay in the U.S.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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