Novavax, Inc. Stock 12‑Month Price Target Raised to $14.86, Implies 35% Upside

Novavax (NVAX) fell 12% to $11.23, Moderna (MRNA) dropped 10% to $212.80, while Pfizer (PFE) rose 0.5% to $29.59. Citi maintained a Sell rating on NVAX but raised its price target. NVAX's revenue depends on Sanofi's (SNY) Nuvaxovid sales and milestones, creating uncertainty.

Novavax (NVAX) stock fell 10.5% to $11.475 after Citigroup reiterated a Sell rating with a $8 price target, 38% below its 52-week high. High short interest and a bearish note from Bank of America also contributed to the decline. The broader market's negative tone added to the pressure.

Vaccine stocks rallied after a report on an NIH push for personalized cancer vaccines. NVAX +16%, MRNA +14%, PCVX +10%, BNTX +5%, MRK +2%, PFE +2%. Moderna rejoined Nasdaq-100. Merck and Moderna's V940 showed positive results in melanoma. BioNTech's programs include autogene cevumeran and BNT113.

A new NIH initiative to accelerate personalized cancer vaccine development has sparked a rally in biotech stocks. Moderna, Novavax, BioNTech, Pfizer, Merck, and Vaxcyte saw gains. The program, launching in December, focuses on pancreatic, liver, colorectal cancers, and childhood tumors. Moderna and Merck reported positive Phase 3 results for their mRNA cancer vaccine in August. BioNTech is advancing multiple cancer therapies.

Novavax (NVAX) shares rose 13.7% as investors focused on its partnership with Sanofi, including a potential $125M milestone payment. The surge follows regulatory approvals in Europe for Sanofi's COVID-Influenza vaccine trial. NVAX's royalty model and analyst price target ($14.00) also support the rally, while broader market gains provide additional tailwinds.

Novavax (NVAX) and Moderna (MRNA) shares fell 11% and 6% respectively on Wednesday after sharp gains the prior day due to a suspected plague case in Russia. The WHO assesses the public health risk as low, and Citi notes vaccine companies are sensitive to headlines. BioNTech (BNTX) showed limited movement. Citi prefers companies focused on other therapeutic areas.