JPMorgan Downgrades Novavax to Underweight From Neutral, Adjusts Price Target to $8

MT Newswires

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Novavax Cut to Underweight From Neutral by JP Morgan

Dow Jones Newswires

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Novavax Falls After J.P. Morgan Downgrades To 'Underweight'

Reuters

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2024-07-30 18:17:39

** Shares of vaccine maker Novavax NVAX.O fall 11.02% to $14.61 premarket

** J.P. Morgan downgrades to "underweight" from "neutral"

** Says levels after the Sanofi SASY.PA deal is unsupported by moderate forecast for COVID-influenza combo and COVID vaccines

** Up to last close, NVAX shares had risen ~267% since the company stuck a licensing deal worth at least $1.2 billion with Sanofi

** For all the enthusiasm ascribed to the potential of COVID/flu combo vaccine candidates to expand the overall respiratory vaccine market, brokerage sees COVID vaccine demand

ultimately being fractional to that of flu

** Forecasts COVID shot and combination vaccine peak sales opportunities of $1 billion and $1.5 billion, respectively

(Reporting by Sriparna Roy in Bengaluru)

(( Sriparna.Roy@thomsonreuters.com ;))

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Why F5 Shares Are Trading Higher By Over 14%; Here Are 20 Stocks Moving Premarket

Benzinga

Shares of F5, Inc. shares rose sharply in today's pre-market trading after the company reported better-than-expected third-quarter financial results and raised its FY24 earnings guidance above estimates.

F5 reported quarterly earnings of $3.36 per share, which beat the analyst consensus estimate of $2.97 per share. Quarterly sales came in at $695.495 million, which beat the analyst consensus estimate of $686.062 million, according to data from Benzinga Pro.

F5 shares jumped 14.3% to $202.92 in pre-market trading.

Here are some other stocks moving in pre-market trading.

Gainers

Imunon, Inc. gained 104.2% to $2.41 in pre-market trading. IMUNON will report topline results from the Phase 2 OVATION 2 study with IMNN-001 In advanced ovarian cancer on July 30.
Jet.AI Inc. shares climbed 48% to $0.4422 in pre-market trading.
Enveric Biosciences, Inc. rose 26.3% to $0.6289 in pre-market trading after jumping around 6% on Monday.
Inspirato Incorporated gained 22.3% to $6.41 in pre-market trading after jumping over 50% on Monday.
Sprouts Farmers Market, Inc. shares gained 17.4% to $99.50 in pre-market trading after the company reported better-than-expected second-quarter financial results and issued its third-quarter earnings guidance above estimates.
Serve Robotics Inc. gained 16.1% to $22.51 in pre-market trading after jumping 47% on Monday.
NIP Group Inc. N shares gained 15.2% to $19.00 in pre-market trading. NIP Group announced the closing of its initial public offering and partial exercise of underwriters’ option to purchase additional ADSs.
Pharming Group N.V. shares gained 10.1% to $8.30 in pre-market trading. Pharming Group will report second quarter financial results on Aug. 1.
Nomura Holdings, Inc. gained 8.2% to $6.33 in pre-market trading.

Losers

QXO, Inc. Q shares fell 79.9% to $12.00 in pre-market trading after dipping 23% on Monday.
Symbotic Inc. shares declined 19.5% to $28.70 in pre-market trading after the company reported worse-than-expected third-quarter earnings results and issued fourth-quarter revenue guidance below estimates.
Lattice Semiconductor Corporation shares fell 14.8% to $46.82 in pre-market trading after the company reported worse-than-expected second-quarter financial results and issued weak third-quarter revenue guidance.
TROOPS, Inc. shares fell 13.2% to $3.22 in pre-market trading.
Woodward, Inc. fell 10.5% to $164.01 in pre-market trading after the company reported mixed third-quarter financial results and lowered its FY24 revenue guidance below estimates.
Novavax, Inc. shares declined 9.6% to $14.85 in pre-market trading after declining 4% on Monday.
Celldex Therapeutics, Inc. shares fell 8.6% to $38.33 in pre-market trading after reporting Phase 2 results for barzolvolimab in chronic inducible urticaria.
Diageo plc fell 8.5% to $120.36 in pre-market trading after the company missed annual profit expectations.
Rambus Inc. shares dipped 7.8% to $51.50 in pre-market trading following weak quarterly sales.
Amkor Technology, Inc. shares fell 6.2% to $35.28 in pre-market trading after the company issued roughly in-line guidance.

Now Read This:

Roblox, Morgan Stanley And 2 Other Stocks Insiders Are Selling

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Novavax Shares Down 8.4% Premarket After Jp Morgan Downgrades To Underweight

Reuters

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Novavax Inc : Jp Morgan Cuts To Underweight From Neutral

Reuters

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Novavax, Inc. (NVAX) is Attracting Investor Attention: Here is What You Should Know

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Novavax has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Over the past month, shares of this vaccine maker have returned +35.2%, compared to the Zacks S&P 500 composite's -0.2% change. During this period, the Zacks Medical - Biomedical and Genetics industry, which Novavax falls in, has gained 6.9%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings Estimates

Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Novavax is expected to post earnings of $1.13 per share, indicating a change of +94.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $0.49 points to a change of +109.1% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $0.08 indicates a change of -82.5% from what Novavax is expected to report a year ago. Over the past month, the estimate has changed -83.7%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Novavax is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth Forecast

Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Novavax, the consensus sales estimate of $429.83 million for the current quarter points to a year-over-year change of +1.3%. The $999.14 million and $658.03 million estimates for the current and next fiscal years indicate changes of +1.6% and -34.1%, respectively.

Last Reported Results and Surprise History

Novavax reported revenues of $93.86 million in the last reported quarter, representing a year-over-year change of +16%. EPS of -$1.05 for the same period compares with -$3.41 a year ago.

Compared to the Zacks Consensus Estimate of $101.24 million, the reported revenues represent a surprise of -7.3%. The EPS surprise was -0.96%.

Over the last four quarters, Novavax surpassed consensus EPS estimates two times. The company topped consensus revenue estimates two times over this period.

Valuation

No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Novavax is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom Line

The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Novavax. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

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