With the summer travel season in full swing, the COVID-19 pandemic seems to be a thing of the past.
But if you don’t stay up to date on your vaccines and booster shots, the consequences could be devastating, according to President Biden’s chief medical adviser, Dr. Anton Fauci.
“If they don’t get vaccinated or boosted, they’re going to be in trouble,” said Dr. Fauci told KNX News 97.1 – a Los Angeles radio station – earlier this week.
He points out that vaccination and booster rates in America are “quite 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 with COVID-19 vaccines. Staying “up to date” on vaccines means having received the primary series and at least one booster dose.
Hard to say if Dr. Fauci’s warning will result in more Americans receiving COVID-19 vaccines and booster shots. But there’s reason for investors to check with companies that make these vaccines.
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Currently, the most dominant COVID strain in the US is Omicron subvariant BA.5. And Moderna could help the country fight it.
Earlier this week, the company’s CEO, Stéphane Bancel, told Yahoo Finance that they’re “working really hard” to get a variant-specific booster out this fall.
“As we speak, we are already manufacturing the BA.4/5 vaccine,” he says. “We will provide more data as we get closer, but we know how important it is. And know that every day is important.”
In the second quarter, Moderna had total revenue of $4.7 billion, up from $4.4 billion a year ago. Management attributed the increase in revenue to higher product sales of the company’s COVID-19 vaccine.
But modern stocks are not immune to the market sell-off this year. They have fallen about 20% in 2022.
Piper Sandler’s analyst Edward Tenthoff has rated Moderna as “overweight” and has a price target of $214 — about 14% higher than where the stock is today.
BioNTech is another big name in the COVID vaccine business.
According to Statista, as of July 20, more than 355,396,322 doses of Pfizer-BioNTech’s COVID-19 vaccine have been administered in the United States — more than vaccines from any other manufacturer.
On June 25, Pfizer and BioNTech announced that their Omicron-matched vaccine candidates demonstrated a strong immune response against Omicron.
There are also hopes of tackling new sub-variants.
“Preliminary laboratory studies indicate that both Omicron-matched candidates neutralize Omicron BA.4 and BA.5, albeit to a lesser extent than for BA.1,” the companies said, while continuing to “gather additional study data on Omicron BA.4/ BA.5.”
BioNTech will report Q2 results on Monday 8th before the bell.
Previously, management said it expects BioNTech to post full-year 2022 COVID-19 vaccine revenue of between €13 billion and €17 billion.
Last month, SVB Securities analyst Daina Graybosch upgraded BioNTech to Outperform from Market Perform. Their $233 price target on the shares implies a potential upside of 28%.
When it comes to COVID vaccine stocks, Novavax is a new name to consider.
Last month, the U.S. Food and Drug Administration granted an emergency use authorization for the Novavax COVID-19 Vaccine Adjuvanted (NVX-CoV2373). In the 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 the efficacy and safety data of our COVID-19 vaccine and underscores the urgent need to bring another vaccine option to the U.S. population as the pandemic continues,” said Stanley C. Erck, President and Chief Executive Officer from Novavax a press release.
However, Novavax shares have taken a beating — they’re down a staggering 57% year-to-date.
B. Riley Securities analyst Mayank Mamtani sees a recovery on the horizon. He has a buy rating on Novavax and a price target of $171.
Considering that Novavax is currently trading at around $60 per share, Mamtani’s price target implies a potential benefit of 185%.
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This article is informational only and should not be construed as advice. It is provided without any guarantee.