On Thursday, TD Cowen analyst Brendan Smith downgraded Novavax (NVAX) stock to a market perform rating from outperform, citing a $700 million litigation headwind and uncertainty about Novavax’s ability to penetrate the commercial Covid-19 vaccine market and fund further development of future boosters. Novavax is currently engaged in a dispute with Gavi over a deal to deliver 350 million doses of its Covid shot. Novavax has received two $350 million payments but hasn’t delivered any doses, according to the New York Times.
Novavax’s shares have been under pressure since mid-2021 amid an expected decline in demand for Covid shots. Despite having a solid platform, Novavax’s stock has a low Relative Strength Rating of 4, putting shares in the lowest 4% of all stocks when it comes to 12-month performance.
