Stock Pick

  • Novavax (NVAX) Stock Is a Winner, but How Much Higher Can It Go?

    Novavax (NVAX) Stock Is a Winner, but How Much Higher Can It Go?Volatility is nothing new in the healthcare sector. Nonetheless, vaccine player Novavax’s (NVAX) recent spectacular moon bound rally is on another level.The stock surged by another 147% this month, cumulatively accruing 1025% of gains in 2020. Which begs the far-fetched question: Has Novavax provided the coveted vaccine? Not yet, but it is taking some big strides towards addressing the issue.The latest share appreciation came following news that the coalition for Epidemic Preparedness Innovations (CEPI) will commit up to $388 million to further the development of Novavax’ vaccine candidate against COVID-19 (SARS-CoV-2), NVX-CoV2373. The investment is CEPI’s biggest to date and follows on from what now feels like a miniscule initial $4 million grant to Novavax.In tandem with setting the process of clinical trials in motion (with Phase 1/2 trial data expected by July), part of the funding will go towards ramping up production at various locations around the globe, with a target of matching the largest pharma vaccine developers’ production capacity.Based on Novavax’ vaccine track record, Ladenburg Thalmann analyst Michael Higgins is confident in the outcome, and predicts the Phase 1/2 results “will prove to be safe.” The results are key to his thesis of Novavax’ rNPV (risk-adjusted net present value) as the data will have an impact on the “scale up activities.”Higgins expounded, “While CEPI and Novavax are working collectively to generate the manufacturing capabilities to reach one billion doses in 2021, we are modeling the 100M doses are sold in 2021 at $10/dose, with 50% net margins. Mgt has not provided guidance on our assumptions; but given the low net manufacturing costs (especially on a large scale) we believe our assumptions are within reasonable expectations. We believe the low manufacturing margins contributed to CEPI’s decision, as it seeks to partner with innovators to treat as many global citizens as possible.”Overall, Novavax gets 100% support from the Street, as all 5 analysts tracked over the last 3 months rate the vaccine player a Buy. With an average price target of $49.20, the analyst fraternity projects upside of nearly 10%. (See Novavax stock analysis on TipRanks)To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

    from Yahoo Finance https://ift.tt/36DWtPS

  • Why I think the CSL share price is a strong buy today

    Healthcare shares

    The CSL Limited (ASX: CSL) share price edged 0.17% lower yesterday to close at $287.51 per share. The Aussie biotech’s shares have climbed as high as $342.75 in 2020 before slumping in late May.

    Here are a few reasons why I think CSL could be a strong buy at its current price.

    Why the CSL share price could be a strong buy

    CSL is amongst the largest ASX 200 shares on the market with a $130.54 billion market cap. I think the CSL share price could be a buy, given large caps have tended to outperform small caps in past market downturns.

    The company is a leading healthcare player, which should help support CSL’s valuation in 2020. The Aussie company has a strong presence in both rare and serious diseases and influenza vaccines and antivenoms.

    Given its areas of specialisation, you may have expected the CSL share price to soar amid the coronavirus pandemic. However, CSL isn’t heavily involved in the race for a COVID-19 vaccination.

    That being said, the biotech giant has partnered with the University of Queensland in a COVID-19 vaccine development program. CSL is also investigating the role that immunoglobulin could play in terms of COVID-19 treatment here in Australia.

    I think much of CSL’s earnings will continue to hold up despite the pandemic. The Aussie healthcare group already reaffirmed its earnings guidance in April 2020.

    That alone doesn’t mean the CSL share price is in the buy zone. I think the key is to not overpay, even for high-quality ASX shares.

    At $287.51 per share, I think CSL is trading cheaply right now. Even in the midst of the recent bear market, CSL shares fell to just $270.88 on 20 March.

    The current price-to-earnings ratio of 42.55 times does look a touch high. However, I think the support around the current CSL share price level combined with a strong earnings profile is worth paying for in the current market. 

    If CSL isn’t in your buy basket right now, check out these 5 cheap ASX shares instead!

    NEW. The Motley Fool AU Releases Five Cheap and Good Stocks to Buy for 2020 and beyond!….

    Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.

    One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

    Another is a diversified conglomerate trading over 40% off it’s high, all while offering a fully franked dividend yield over 3%…

    Plus 3 more cheap bets that could position you to profit over the next 12 months!

    See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

    CLICK HERE FOR YOUR FREE REPORT!

    More reading

    Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post Why I think the CSL share price is a strong buy today appeared first on Motley Fool Australia.

    from Motley Fool Australia https://ift.tt/2XEVKd9

  • President Trump signs social media executive order

    President Trump signs social media executive orderPresident Donald Trump signed an executive order targeting social media companies. Yahoo Finance’s Alexis Keenan breaks down the details of the executive order on The Final Round.

    from Yahoo Finance https://ift.tt/3grPbmV

The Latest

  • Is the Woolworths share price a buy?

    ·

  • Cloudflare Sees Uptick in Cyber Attacks as Internet Usage Increases

    ·

  • SpringWorks (SWTX): A Rare Cancer Biotech with Potentially >50% Upside. Recommending BUY.

    ·

  • Which markets or industries do you see perform best in the next decades (geographic vs. industry focus vs. cap size)? How do you build this into a strategy and portfolio to maximize expected risk-adjusted future returns?

    ·