Novavax, Inc.

Novavax, Inc. (NASDAQ: NVAX) is a biotechnology firm that operates through its wholly-owned subsidiaries, Novavax AB and Novavax CZ. Through the discovery, development, and marketing of vaccines to prevent deadly infectious illnesses, the Company works to enhance world health. Its recombinant technology platform uses genetic engineering's power and speed to create immunogenic nanoparticles that solve critical global health needs.

Key Highlights

• The company reported YoY growth of 140.76% in total revenue to USD 1.15 billion in FY21 (ended December 31, 2021) compared to USD 476 million in FY20.
• NVAX’s net loss increased to USD 1.74 billion in FY21 vs. USD 418 million in FY20.
• As of December 31, 2021, the company had cash and cash equivalents (including short-term investments) of USD 1.52 billion and total debt of USD 453.99 million.
• Its current ratio was 0.90x in FY21, whereas the industry median stood at 6.00x.
• NVAX announced on April 13, 2022, that Swissmedic, the Swiss Agency for Therapeutic Products, had granted Novavax conditional marketing authorization (CMA) for Nuvaxovid COVID-19 Vaccine (recombinant, adjuvanted) for active immunization to prevent COVID-19 caused by SARS-CoV-2 in people aged 18 and up.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, a bearish indicator.
• Stock is currently leaning towards the lower end of the 52-week range of USD 56.67 to USD 277.80.

Conclusion: Considering the company’s surge in topline, lack of visibility into profitability, technical indicators, and associated risks. We recommend a "Watch" rating on the stock at the current price of USD 58.96, down 5.21%, as of April 14, 2022, at 11:38 AM PDT.

Technical Price Chart (as on April 14, 2022, at 11:38 AM PDT). Source: REFINITIV, Analysis by Kalkine Group

Technical Analysis Summary:

*Current price as of April 14, 2022, at 11:38 AM PDT

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decision should be made depending on the investors' appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above.