BofA upgrades Novavax to Neutral on ‘best outcome’ Sanofi pact

BofA upgraded Novavax (NVAX) to Neutral from Underperform with a price target of $12, up from $4. The stock in midday trading is up 110%, or $4.91, to $9.38. The company’s agreement with Sanofi (SNY) is the “best outcome” as it provides commercial support to “fill the void” to 2025 and “much-needed confidence” in the stock, the analyst tells investors in a research note. The firm believes the addition of a large pharma company could help Novavax achieve higher market capture and compete with other large players. It says the deal removes Novavax’s going concern.