What are the four vaccine stocks to monitor closely in September?
With more than 47 million people in the UK having at least one vaccination jab and news circulating that a vaccine boost programme will be implemented in September for the most vulnerable in society, this could potentially lead to a rise in COVID-19 Vaccine stocks.
In light of this, Maxim Manturov, Head of Investment Research at Freedom Finance Europe, explains why it isn’t too late to invest in vaccine stocks, what you need to know before investing, and sheds light on the top vaccine stocks to watch out for in the market.
Is it not too late to invest into the leading COVID-19 vaccine stocks?
The COVID situation in the UK is improving thanks to the vaccine being accessible throughout the entire country; however, this is not the case for some other countries. New vaccines are likely to continue emerging, and there will be more demand, too. Some companies already got FDA’s emergency use authorization (EUA) for their COVID-19 vaccines, others may soon get the same.
What you need to know before investing into COVID-19 vaccine stocks
First and foremost, you need to learn about the product’s status. Some companies already have their vaccines in the market, while others heavily depend on whether they will get approved by the regulatory authorities.
Then, you will need to know what issues the vaccine producers face. Some companies may already have received approval, but still won’t make it to the market.
Learning which other products and/or drugs the company owns may also help. If a pharma company already owns successful products, the risk is somewhat lower.
Factors that may boost vaccine stock prices
Recent reports suggest that the COVID-19 vaccine market may rise to almost $20 billion in by 2026, with some industry experts stating that US and Canadian companies are expected to take the lead, with EU and Asian organisations closely following. This outlook is based on new virus outbreaks and more vaccine public purchases.
Meanwhile, Our World in Data reports that there has already been over 5 billion vaccine doses administered globally, with this only looking to grow as we head into the winter. This means companies are having to produce more vaccines to meet rising demand.
So what vaccine companies should you consider to invest in?
1. Pfizer (PFE) created the COVID-19 vaccine in cooperation with BioNTech. This was the first vaccine to get EUA approved in the US and is currently quite successful. The Pfizer stock is likely to continue rising within the next five or more years; it also pays good dividends, making it a very favorable investment. With a maximum target price of $53 expected by investment banks, the stock could return 10%.
2. Johnson & Johnson’s (JNJ) vaccine was the third to get FDA’s approve. Unlike Pfizer-BioNTech and Moderna, the J&J vaccine only requires one jab. Further still, J&J is a great company that does not depend on a single product’s success; it is a very much diversified and is often described as being the “king of dividends”. This makes it one of the safe havens for long term investors. With the maximum target price at $202, the growth potential may reach 14.6%.
3. Novavax (NVAX) is a pharma company that attempts to create vaccines and adjuvants based on nanoparticles using the engineered vaccine technology. In particular, it is discovering drugs against COVID-19, Ebola, season flu, and many other infectious diseases. Recently, Novavax announced its vaccine is 96% efficient against coronavirus, which is one of the highest on the market. Moreover, the company’s research shows the vaccine is also efficient against new COVID variants, showing it is already ahead of the competition. The British government said 10 million Novavax doses would be produced and packed in the UK. In Q3 2021, Novavax expects to apply for US, UK, and EU regulatory approvals. With a maximum target price of $305, the company’s stock may rise by 18.5%.
4. CureVac NV (NASDAQ: CVAC) is a Germany based biopharma company that creates vaccines against infectious diseases and drugs against cancer and some rare illnesses. The company expects to continue working on its COVID-19 vaccine once it runs the final analysis, which needs 80 more COVID cases. After that, it should start revolving regulatory issues. The EU drug regulator said that will continue assessing CureVac’s clinical data. The company already has some good opportunities in the EU, having a contract for supplying 225 million doses, signed by the European Commission. CureVac’s vaccine may also be used for younger people. For people between 18 and 60 years old, the vaccine candidate reached 77% efficiency against moderate to severe illness and was 100% effective in preventing hospitalisation or death. With the average target price predicted at $68.50, the upside potential is estimated at 16.50%.