With the summer travel season in full swing, the COVID-19 pandemic may seem like a thing of the past.
President Biden’s chief medical adviser Dr. Anthony Fauci.
“If they are not vaccinated or strengthened, they will have problems,” said Dr. Fauci spoke to Los Angeles radio station KNX News 97.1 earlier this week.
He notes that vaccination and booster rates in America are “pretty disheartening.”
According to the Kaiser Family Foundation, as of July 20, 2022, 228 million Americans (or 70% of the US population) were not up-to-date on their COVID-19 vaccines. “Up to date” with vaccines means obtaining the primary series. and at least one booster dose.
It’s hard to tell if it’s a doctor. Fauci’s warning will lead to more Americans getting the COVID-19 vaccine and booster shot. But it gives investors a reason to check the companies that make these vaccines.
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Modern (mRNA)
Currently, the most dominant strain of COVID in the United States is the BA.5 subvariant of Omicron. And Moderna could help the country fight it.
Earlier this week, the company’s CEO Stéphane Bancel told Yahoo Finance that they are “working really hard” to develop a variant-specific amplifier this fall.
“We are already developing the BA.4/5 vaccine as we speak,” he says. “We’ll give more information as we get closer to it, but we know how important it is. And know the importance of each day.”
In the second quarter, Moderna reported total revenue of $4.7 billion, up from $4.4 billion a year ago. Management attributed the top-line growth to increased product sales of the company’s COVID-19 vaccine.
But not Modern shares immunity from being sold on the market this year. In 2022, they decreased by about 20%.
Piper Sandler analyst Edward Tenthoff has an “overweight” rating on Moderna and a price target of $214 — about 14% above where the stock is today.
BioNTech (BNTX)
BioNTech is another big name in the COVID vaccine business.
According to Statista, more than 355,396,322 doses of the Pfizer-BioNTech COVID-19 vaccine had been administered in the United States as of July 20, more than any vaccine made by any other manufacturer.
On June 25, Pfizer and BioNTech announced that vaccine candidates adapted to Omicron showed high immune responses to Omicron.
There is also hope for combating new subvariants.
“Preliminary laboratory studies indicate that the Omicron-adapted candidates neutralize Omicron BA.4 and BA.5 to a lesser extent than BA.1,” the companies said, while “continuing to gather additional research data on Omicron BA.4.” /BA.5.”
BioNTech will report Q2 earnings on Monday, August. 8 before the bell.
Earlier, management said they expected BioNTech COVID-19 vaccine revenue to be between €13 billion and €17 billion for 2022.
Last month, SVB Securities analyst Daina Graybosch upgraded BioNTech to “outperform” from “market perform.” His $233 price target on the stock implies a potential upside of 28%.
Novavax (NVAX)
When it comes to COVID vaccine stocks, Novavax is a new name worth considering.
Last month, the US Food and Drug Administration granted emergency use authorization for the Novavax Adjuvanted (NVX-CoV2373) COVID-19 vaccine. In a critical Phase 3 clinical trial, the two-dose vaccine was 90.4% effective in preventing mild, moderate, or severe COVID-19.
“This approval reflects the strength of our COVID-19 vaccine’s efficacy and safety data and underscores the critical need to offer another vaccine option to the U.S. population as the pandemic continues,” said Novavax President and CEO Stanley C. Erck. press release.
However, Novavax stock has taken a nosedive — down a staggering 57% year to date.
B. Riley Securities analyst Mayank Mamtani sees a rebound on the horizon. He has a buy rating and a $171 price target on Novavax.
Given that Novavax is currently trading at around $60 a share, Mamtani’s price target potential upside 185%.
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