Why Novavax Stock Slumped Today
On Wednesday, Novavax (NASDAQ: NVAX) took a bit of a breather from its impressive run on the stock market year to date. The company's shares dropped by 6% today despite Novavax not reporting any news. The catalyst for this slump may have been the fact that Ladenburg Thalmann analyst Michael Higgins downgraded Novavax's stock from neutral to buy, pointing to valuation concerns.
Largely thanks to its efforts to develop a vaccine for the SARS-CoV-2 virus that causes COVID-19, Novavax's shares are up by more than 2300% since the beginning of the year. And with the company recently landing $1.6 billion in funding from the U.S. government as part of Operation Warp Speed, many believe that Novavax will be one of those companies that goes on to launch a vaccine for COVID-19 on the market.
However, Higgins thinks that Novavax's stock is now "fairly priced," and although the analyst increased his price target for the stock from $50 to $105, the shares closed today's trading session at $98.30 apiece.
Source Fool.com
