Novavax stock plunges after JPMorgan downgrade

Novavax (NVAX) shares are falling after JPMorgan downgraded the stock from Neutral to Underweight. Since May, shares surged 250% after the company announced a strategic partnership with Sanofi (SNY).

Market Domination hosts Josh Lipton and Julie Hyman discuss the factors behind the call.

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This article was written by Gabriel Roy

Video Transcript

Moving to another name here.

We're watching shares of Novavax Check out this one.

The stock getting absolutely crushed today after JP.

Morgan did issue a downgrade, lowering its rating from neutral to underweight equivalent of a sell price target of eight.

Novak shares have been surging up over 250% since May after announcing that strategic partnership with Santa Fe um so shares obviously getting hit hard.

JP Moore JP.

Morgan no longer fans analyst, says Julie.

The share levels substantially overvalue the potential economic and revenue to novas from that uh, collaboration with Santa Fe.

Santa Fe expects the shares to underperform the firm's broader coverage over the midterm.

Yeah, he basically Eric Joseph, who's the, UM Co. Did this, Downgrade said.

You know, you see this covid flu vaccine combo that we're talking about here.

But he says, we see covid vaccine demand ultimately being fractional to that of the flu, and so that this is just not gonna be that additive to Novavax.

In addition, he says, looking back again, if you contrast it with flu, COVID-19 was greatly oversupplied, and now it faces a widening demand deficit.

So basically, he says, Novavax has soared on all these expectations that, in his view, are just not going to be fulfilled.

Yeah, that price target by, by the way, the eight per Bloomberg Street low at this point.