Why Novavax Stock Hit a Fresh 52-Week Low Today
Shares of the recombinant-protein vaccine specialist Novavax (NASDAQ: NVAX) were down by a noteworthy 9.2% on heavy volume as of 9:55 a.m. ET on Thursday. As a result, the biotech's stock price hit a fresh 52-week low this morning.
What's weighing on Novavax's shares today? Yesterday, J.P. Morgan analyst Eric Joseph reportedly cut his 12-month price target on the stock from $132 to $27 a share, citing the company's recent downward revision for its 2022 revenue forecast as a key reason for the far lower price target.
This dramatic downward price revision is particularly interesting because it implies that Novavax won't even meet Wall Street's most-pessimistic 2023 revenue estimate of $1.25 billion. Spelling this point out, biotech stocks rarely trade at under two times forward-looking sales, even in this dour market.
Source Fool.com
