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Penn National Dips 8% On $1B Share Offering; Deutsche Sees 66% Downside

Thu, 09/24/2020 - 09:45

Penn National Gaming announced the start of a public offering to sell 14 million shares of its common stock pushing its shares down more than 8% in Thursday’s morning market trading.As part of the offering, Penn National (PENN) will grant the underwriters a 30-day option to purchase up to 2.1 million of additional shares of its common stock. The gaming company expects to use the net proceeds from the offering for general corporate purposes, it said.Last month, Penn National reported a 2Q loss of $1.69 per share, versus the Street consensus of a loss of $2.06 per share. 2Q revenues of $305.5 million exceeded analysts’ estimates of $249.1 million.Shares in Penn National have this year increased by a whopping 170%, with the average analyst price target of $59.42 now implying downside potential of about 7.4% to current levels.Based on Wednesday’s close and assuming the issuance of the greenshoe, the transaction would raise about $1 billion in cash, Deutsche Bank analyst Carlo Santarelli estimated. Santarelli, who has a Sell rating on the stock with a $22 price target (66% downside potential), says he believes the raised capital is likely to be put to work towards competing in the highly promotional sports betting arena. More specifically, the analyst expects PENN to use the capital towards additional Barstool Sportsbook app content and Barstool branded retail sportsbooks.“At 11.2x our 2022 adjusted EBITDAR forecast, versus the historical average multiple ~6.5x, the equity raise, in our view, should have been largely expected,” Santarelli wrote in a note to investors. “While we would not view the transaction as a positive for shares, we do believe it was a necessary strategic decision, given the run in shares and the unrealistic, in our opinion, implied value of the sports and iCasino verticals.”“At current levels, we estimate the sports and iCasino segments represent roughly $6.2 bn of the $9.3 bn equity market cap, a valuation that far exceeds the value implied in peer equities with similar prospects for success in sports and iCasino,” the analyst added.Currently, the rest of the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 10 Buys, 2 Holds and 1 Sell. (See PENN stock analysis on TipRanks).Related News: BlackBerry Pops 8% After 2Q Profit Surprises; Street Says Hold Intel’s Mobileye In Driver-Assistance Deal For Geely’s Electric Vehicles In China Gilead To Pay $97M To Settle Kickback Debacle Over Letairis Drug More recent articles from Smarter Analyst: * 3 “Strong Buy” Healthcare Stocks Under $5 With Triple-Digit Growth Prospects * Darden Restaurants Gains 6% On 2Q Profit Guidance * New Residential Hikes Dividend By 50%; Shares Jump 7% * BlackBerry Pops 8% After 2Q Profit Surprises; Street Says Hold

Vermilion Energy Inc. Provides Update on the Grandpuits Refinery

Thu, 09/24/2020 - 09:23

CALGARY, AB, Sept. 24, 2020 /CNW/ - Vermilion Energy Inc.

JinkoSolar Holding Co., Ltd. (NYSE:JKS) Stock Catapults 50% Though Its Price And Business Still Lag The Market

Thu, 09/24/2020 - 08:52

Despite an already strong run, JinkoSolar Holding Co., Ltd. (NYSE:JKS) shares have been powering on, with a gain of...

What Kind Of Shareholders Own American Airlines Group Inc. (NASDAQ:AAL)?

Thu, 09/24/2020 - 06:46

The big shareholder groups in American Airlines Group Inc. (NASDAQ:AAL) have power over the company. Insiders often...

Gold Forecast – Gold Prices Nearing Major Buy Signal

Thu, 09/24/2020 - 05:24

Once or twice a year, we get a significant buying opportunity in gold. The next buy signal is rapidly approaching, and prices could bottom any day.

Johnson & Johnson Begins Final Stage Trial of COVID-19 Vaccine; Target Price $170

Thu, 09/24/2020 - 02:21

Johnson & Johnson, one of the world’s largest and most comprehensive manufacturers of healthcare products, said on Wednesday that it has begun its large-scale, pivotal, multi-country Phase-3 trial for its COVID-19 vaccine candidate, sending shares as high as 2%.

Two Ways To Win Big On The Oil Price Rebound

Wed, 09/23/2020 - 20:00

Aggressive investors who know how to balance risk and reward are likely to be the biggest winners as oil prices rebound from record lows

Vaxart: Watch Out for This Underdog in the COVID-19 Vaccine Race

Wed, 09/23/2020 - 15:51

First mover advantage is not to be sniffed at. However, history is littered with first movers being usurped by latecomers. Could vaccine specialist Vaxart (VXRT) join the list of late disruptors?The small-cap biotech is far behind its mostly bigger competitors in the development of a COVID-19 vaccine. Yet, after its investigational new drug (IND) application was approved by the FDA last week, Vaxart can finally proceed with the Phase 1 trial of its candidate, which is expected to kick off by the end of the month.H.C. Wainwright analyst Vernon Bernardino believes the biotech’s offering already boasts one significant differentiator to mark it as a viable contender.“We believe initiation of first-in-human studies with an oral vaccine for SARS-CoV-2 is highly anticipated, as this route of administration, in our opinion, would present significant logistical storage and distribution advantages in the broad and rapid vaccination of the estimated 330M people in the U.S. and the over 7B global population,” Bernardino noted. As Bernardino notes, Vaxart’s unique selling proposition is that its potential vaccine is in tablet form.With the majority of SARSCoV-2 vaccine candidates currently requiring two doses to be taken 2-3 weeks apart, the administration of billions of doses could lead to a serious logistics headache.“In contrast,” Bernardino said, “Vaxart aims to develop doses of its oral tablet vaccine that could potentially be mailed to individuals or health care centers that would only need to be administered once.”What’s more, Vaxart reported encouraging preclinical results recently which further supports its case.Bernardino believes the data “suggested that the Vaxart’s vaccine induces immunogenicity on three levels: (1) induction of potent serum neutralizing antibodies to the viral S protein; (2) induction of a mucosal immune response; and (3) induction of T cell responses.”While the full results are not yet available, Bernardino believes Vaxart’s vaccine will be “competitive with the leading vaccine candidates currently in Phase 3 study.”So, what does it all mean for investors? Bernardino sticks to his Buy rating while reiterating a $17 price target. This figure implies a substantial 134% upside from current levels. (To watch Bernardino’s track record, click here)Vaxart has slipped under most analysts’ radar; the stock’s Moderate Buy consensus is based on just two recent Buy ratings. With shares trading at $7.34, the $19.50 average price target suggests room for 166% upside. (See Vaxart stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

Gold loses sheen as robust dollar weighs

Wed, 09/23/2020 - 00:08

Spot gold fell 0.2% to $1,894.69 per ounce by 348 GMT. U.S. gold futures were down 0.5% to $1,898. "We are seeing a risk-off environment taking hold, which means that the dollar continues strengthening and there is a lot of pressure on gold prices in the near-term," said Howie Lee, economist at OCBC Bank.

How much gold is there left to mine in the world?

Tue, 09/22/2020 - 23:41

Some experts believe we may have hit "peak gold" production in our pursuit of the precious metal.

Amazon Tells Echelon Fitness to Stop Selling Prime Bike

Tue, 09/22/2020 - 23:34

(Bloomberg) -- Inc. told Echelon Fitness to stop selling an exercise bike that was promoted and branded as a product developed in partnership with the e-commerce giant.Echelon announced the EX-Prime Smart Connect Bike earlier this week and said it was developed “in collaboration with Amazon.” The machine was listed on Amazon’s website for $500, a steep discount to machines offered by Peloton Interactive Inc.“This bike is not an Amazon product or related to Amazon Prime,” an Amazon spokeswoman wrote in an email late Tuesday. “Echelon does not have a formal partnership with Amazon. We are working with Echelon to clarify this in its communications, stop the sale of the product, and change the product branding.”Amazon’s Prime subscription, which offers free shipping and other perks for an annual fee, has been one of the most successful offerings in e-commerce history. Products associated with the program often get a sales boost, especially on Amazon’s website.Echelon didn’t immediately respond to a request for comment. However, the company’s original press release announcing the bike was no longer available online late Tuesday. On Amazon’s website, the product was also listed as “currently unavailable.” Shares of Peloton fell as much as 6.7% early Tuesday on concern about new competition from Amazon. But the stock recovered to be down less than 1% at the close in New York.“Other than a few cosmetic changes, the $500 bike is almost identical to Echelon’s $500 bike at, which has been available at since March and hasn’t had any noticeable impact to Peloton’s growth,” KeyBanc Capital Markets analyst Edward Yruma wrote in a note to investors.(Updates to show Echelon press release no longer available in fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Musk Sets Lofty Goal for $25,000 Model With Tesla-Made Batteries

Tue, 09/22/2020 - 22:46

(Bloomberg) -- Tesla Inc. laid out a road map to build a $25,000 car by 2023 and eventually 20 million cars a year, part of a highly anticipated presentation that was short on the sizzle from Elon Musk that investors have come to expect.The cheaper car will come from cutting the cost of batteries in half, the chief executive officer said at an event Tuesday, based on a series of innovations that include using dry electrode technology and making the battery a structural element of the car.Those incremental and longer-term advances belied expectations for a blockbuster leap forward, which Musk himself played up in the weeks ahead of his company’s first-ever “Battery Day” event, then walked back on Monday. Tesla shares fell as much as 7.7% in postmarket trading Tuesday after closing at $424.23.“The challenge with the stock is that everything they are talking about is three years away,” said Gene Munster, managing director of Loup Ventures. “I think traditional auto is in an even tighter spot, but Tesla investors want this tomorrow.”Vertical-integration improvements -- from making its own battery cells on a pilot line at its factory in Fremont, California, to owning rights to a lithium clay deposit in Nevada -- are designed to allow Tesla to cut costs and offer a cheap car as soon as 2023.“This has always been our dream from the very beginning,” Musk said at the event showcasing Tesla’s battery technology. “In about three years from now, we are confident we can make a compelling $25,000 electric vehicle that is also fully autonomous.”Halving Battery CostsMusk, 49, is teasing prospects for a cheaper mystery model without ever having really delivered on the $35,000 price point he had long promised for the Model 3. Three years after Tesla started taking orders for the car in early 2016, the CEO announced plans to close most of Tesla’s stores as a cost-saving measure, allowing him to offer the car at that cost. He backtracked 10 days later, and the cheapest Model 3 available now is $37,990.Making a truly mass-market electric car and boosting Tesla’s current annual production to 20 million cars will require vastly more batteries than are currently being produced from a handful of suppliers around the world. So Musk plans to expand global capacity by manufacturing battery cells in-house to supplement what it can buy.“Today’s batteries can’t scale fast enough,” said Musk, who is driven in part by the need to find sustainable energy sources. “There’s a clear path to success but a ton of work to do.” Musk said the gasoline-powered internal-combustion engine will one day be obsolete.Musk described an “incredible series of innovations with varying levels of difficulty,” said Venkat Viswanathan, a battery expert at Carnegie Mellon University. While battery-manufacturing advances are feasible and deliverable in the three-year time frame, Viswanathan thinks that chemistry developments will take a longer.If the planned innovations pay off, vehicle range could increase 54%, cost could decrease 56% and investment in gigafactories could decline 69%, said Andrew Baglino, Tesla’s senior vice president for powertrain and energy engineering.BloombergNEF estimates Tesla’s pack prices were $128/kWh in 2019. A 56% cost reduction would bring prices down to $56/kWh. In addition to the pilot line for battery-cell production in Fremont, and Musk said the company also will make cells at the factory that is under construction in Berlin.Battery Cell ‘Leap’Most global automakers have shied away from making their own battery cells, citing the high investment costs and their lack of expertise in an industry dominated mostly by Asian electronics manufactures such as Panasonic Corp. and LG Chem Ltd.Musk said in a tweet Monday that Tesla will need to start producing its own battery cells to support its various products, even as it ramps up purchases from outside suppliers. He wrote that the company expects significant shortages of cells in 2022 and beyond unless it ramps up output of its own.“I’m really surprised that they’re taking that leap themselves,” said Tony Posawatz, a consultant who led development of General Motors Co.’s plug-in hybrid Chevrolet Volt and now sits on the board of Lucid Motors Inc., a Tesla rival. “I think this is going to be a bit harder than what they think, and I don’t think we’ll see a lot of volume out of that for quite some time.”Tesla’s most important and long-standing partner on batteries is Osaka-based Panasonic, but it also has smaller-scale agreements with Contemporary Amperex Technology Co., or CATL, in China’s Fujian province and South Korea’s LG Chem.Read more: LG Chem, Panasonic Slide as Tesla Looks to Lower Battery CostsThe highly technical Battery Day presentation included several nuggets of news that were overshadowed by the talk of cathodes and electrolytes. One example: The “Plaid” version of the Model S sedan -- with a range of 520 miles -- is now available to order, though the vehicle isn’t expected to go on sales until late 2021.Tuesday’s three-hour event began with the annual shareholder meeting, held outside to allow for social distancing. Shareholders sat in Tesla cars in a parking lot, beeping loudly instead of cheering as Musk spoke.Investors voted to re-elect Musk and chairman Robyn Denholm to the board and voted against resolutions that would have required more transparency about human rights in the supply chain and the use of arbitration with employees. One shareholder resolution, which requires Tesla to adopt a simple majority vote, did pass.Musk told shareholders he expects to see deliveries grow on the order of 30% to 40% this year, reaffirming Tesla’s forecast at a time when automakers are struggling to recover from the coronavirus pandemic. “While the rest of the industry has gone down, Tesla has gone up,” he said.Tesla has said it anticipates delivering 500,000 vehicles in 2020, up about 36% from 2019. In July, the electric-car maker said achieving that goal would be “more difficult” due to a pandemic-related production shutdown early in the year. Global sales are projected to drop about 17% this year to 75 million from 90 million last year, according to research firm LMC Automotive.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Blacklisting U.S. Tech Would Highlight China’s Own Weakness

Tue, 09/22/2020 - 22:29

(Bloomberg Opinion) -- Plans by China to draw up a blacklist of U.S. technology firms might sound great to hardliners as a retaliatory measure against Washington, but would most likely backfire. Pulling the trigger on such a threat could end up proving that the importance of the world’s most populous country as a global buyer may be smaller than many imagine.Beijing has sped development of a catalog of companies it could target, yet debate remains in the halls of power over whether to release it before November’s U.S. election, if at all, the Wall Street Journal reported Tuesday, citing officials it didn’t name. China has been mulling what it calls an unreliable entities list since at least May last year, though little has been heard of it since then.You can understand Chinese leader Xi Jinping’s possible frustration as U.S. President Donald Trump rolls out ban after ban on companies from national champion Huawei Technologies Co. to booming upstart ByteDance Ltd.Still, Xi’s own agenda to build China into a technology powerhouse makes him more reliant on the very firms likely to appear on any blacklist. In addition, there are also companies Beijing no longer needs — often because their technology has already been pilfered — that have already started reducing their reliance on the Chinese market, weakening the real power of any threat.Cisco Systems Inc., a global leader in communications technology, is a likely target of possible bans, according to the Wall Street Journal. However, the Silicon Valley company posted a 16% drop in sales from China last year, with the entire Asia-Pacific region (including Japan) accounting for just 15% of revenue in fiscal 2019. Of the 26 competitors it identified by name in its annual report, only two are Chinese, Huawei and Lenovo Group Ltd.In fact, the list of major U.S. technology companies can be roughly categorized as those having almost no exposure to China because they’ve already been banned (Facebook Inc., Alphabet Inc.), or are of such crucial importance that Beijing can’t do without them, at least for now. Intel Corp., Qualcomm Inc., and Microsoft Corp. would fall into the latter. Then there’s a third group, like Apple Inc. China could ban Apple, I suppose. The nation can survive without iPhones and Macs, but America’s largest company also spends a significant amount on parts and labor in China. It would be less than wise for Beijing to bite the hand that feeds millions of its citizens. Similar to Cisco’s experience, the country is declining in importance to Apple, with sales from the Greater China region falling 16% last fiscal year. It’s hard to argue that China isn’t an important market for American firms. If you look at the chief exports, the reality becomes more clear. Civilian aircraft, including engines and equipment — think Boeing Co. and General Electric Co. — topped the list last year at $10.4 billion, accounting for 9.8% of total U.S. goods sold to China. That’s followed by semiconductors (8.5%) and soybeans (7.5%). It’s notable that while aerospace tops the list of 10 American advanced technology products shipped to China, the value is roughly on par with the U.K. and Canada, while France tops them all. Looking at this subcategory of high-level U.S. goods, accounting for roughly 32% of exports to China, the country is rarely the top buyer. Canada, for example, spent more last year on American information and communications products. A lot of what China does import is just re-exported anyway: Most of those chips it buys head straight back out the door inside iPhones and PlayStations bought by foreign consumers.Trickiest of all is semiconductors. Chinese imports of American chips is a weakness for Beijing, not Washington, and has already been exploited by the Trump administration, most notably by cutting off Huawei from the American technology to manufacture them. It would be a fruitless move for China to ban any chip companies simply out of spite.An unintended byproduct of China copying U.S. technology over the past two decades is that it can no longer hold those companies to ransom, while at the same time it can’t simply afford to kick out those it hasn’t yet been able to replace with local versions. Blacklisting any of them, however, might make an effective piece of theater, and at little cost if the sacrifices are limited to companies it doesn’t really need. China’s rulers will want to calculate whether there’s a pre-election benefit, or if they’d be helping Trump. Even if they wait until after the next president is known, such a move would present a show of strength.That feeling of power might be fleeting. Enforcing such a list is more likely to reveal China as weak.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tim Culpan is a Bloomberg Opinion columnist covering technology. He previously covered technology for Bloomberg News.For more articles like this, please visit us at now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Asian suppliers' stocks slump on Tesla's aggressive plan to make cheaper batteries

Tue, 09/22/2020 - 21:38

Shares of Asian battery suppliers fell on Wednesday after Tesla Inc unveiled a plan to halve the cost of its electric vehicle batteries and bring more production of the key auto component in-house. The fortunes of battery makers in South Korea, Japan and China are linked to Tesla, the EV market leader, supplying its factories in Nevada and Shanghai. Tesla CEO Elon Musk on Tuesday outlined a plan at the company's closely watched "Battery Day" to aggressively boost production of its own batteries and cut battery costs as it looks to deliver affordable electric cars.

Nikola: Executive Shake Up Was Necessary, Says Analyst

Tue, 09/22/2020 - 20:10

Electric car maker Nikola (NKLA) has been grabbing headlines for all the wrong reasons recently. Shares took a 19% tumble on Monday after the company announced that its founder and chairman, Trevor Milton, had resigned.Following a September 10 report, in which short-seller Hindenburg Research alleged Milton had made fabricated claims about NKLA technology, Milton found himself in hot water.Weighing in on this development for RBC, analyst Joseph Spak wrote, “We believe this was a hard, but necessary step for Nikola in wake of allegations against Milton raised by a short-seller report and SEC investigation. In our view, Nikola’s promise was always further out and mostly tied to opportunity they have with fuel cell truck leases and hydrogen infrastructure build-out. This opportunity while large, is not without challenges/risks.”Spak points out that many of the issues raised in the report could be from earlier days and might not be a reflection of where NKLA is now, but notes “they have undoubtedly raised a cloud over NKLA.” However, the analyst makes a point to clear up misconceptions.“NKLA relying on partners for the commercial trucks, hydrogen, Badger, etc., which had always been part of their plan. The comparison to a more vertically-integrated TSLA was never apt (aside from both doing alt. propulsion, biz models quite different) and many were too focused on Badger (much smaller opp). And to be fair, many OEMs (especially in CVs) also rely on other partners for key components,” Spak explained.If Milton had stayed on, it might have added extra uncertainty with respect to customers and partners, so says Spak. Further, its strategy of selling “routes” via fuel cell truck leases, and helping solve problems associated with hydrogen infrastructure build-out made NKLA a stand-out, in Spak’s opinion. “If they're able to succeed, this could potentially create a first mover advantage and a feedback loop allowing them to sell more trucks. As they built out series stations along A to B dedicated routes, they would also slowly be building a larger hydrogen infrastructure to leverage,” he added.Spak does, however, think “Nikola’s stock will be in ‘penalty box’ for a while as they look to rebuild credibility with Street.” As a result, he slashed the price target from $49 to $21, to go along with his Sector Perform rating. Should this target be met in the twelve months ahead, it would reflect a 26% decline. (To watch Spak’s track record, click here)Looking at the consensus breakdown, 2 Buys and 3 Holds have been published in the last three months. As a result, NKLA gets a Moderate Buy consensus rating. The $43 average price target is more aggressive than Spak’s and implies 51% upside potential from current levels. (See NKLA stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

Why NVIDIA Corp. (NVDA) Is Buying SoftBank’s ARM

Tue, 09/22/2020 - 20:05

NVIDIA Corporation (NASDAQ: NVDA) recently struck a deal to acquire Arm Limited from SoftBank Group for $40 billion.  The combination will bring together NVIDIA’s AI computing platform with Arm’s vast ecosystem to "create the premier computing company for the age of artificial intelligence," according to NVIDIA. The deal is a hot topic in the technology industry. The […]

Aurora Cannabis Stock Plunges 18% After Q4 Earnings Call

Tue, 09/22/2020 - 19:05

Aurora Cannabis Inc. (NYSE: ACB) shares plunged over 18% after hours following the release of the company's fourth-quarter earnings results.The Edmonton, Canada-based company reported losing more than CA$3.3 billion ($2.5 billion) in the fiscal year closing Tuesday.On Monday, Jefferies upgraded Aurora from Underperform to Hold. This, along with anticipation for Tuesday's earnings call, caused the cannabis giant's stock to rise, closing Tuesday up 15%. However, excitement fell after the company released its quarterly earnings, causing the stock price to plunge to over 18% after the market close."Aurora has slipped from its top position in Canadian consumer, a market that continues to support material growth and opportunity," admitted recently-appointed CEO Miguel Martin.Martin was appointed earlier this month in replacement of interim CEO and Executive Chairman Michael Singer, and is the third CEO the company had in 2020, after the retirement of Terry Booth in February."My focus is therefore to re-position the Canadian consumer business immediately. We look to expand beyond the value flower segment, leverage our capabilities in science and product innovation and put our effort on a finite number of emerging growth formats," said Martin.View more earnings on ACBAurora's total net revenue of CA$72.1 million ($54.1 million) signified a 5% drop from the previous quarter.Net revenue for consumer cannabis in the recreational market was CA$35.3 million ($26.7 million) dropping 9% from the previous quarter. Medical cannabis net revenue was $32.2 million ($24.2 million), a 4% increase from the prior quarter, attributed to an overall market growth in Canada and Europe.Net loss from continuing operations was CA$1.86 billion ($1.40 billion).The company offered guidance for the first quarter of the following fiscal year. Net revenue is expected to be between CA$60 million and CA$64 million, compared to CA$67.5 million in the fourth quarter of 2020, and will be composed exclusively from cannabis net revenue.The company expects to achieve positive Adjusted EBITDA in the second quarter of 2021.Lead image by Ilona Szentivanyi. Copyright: Benzinga.See more from Benzinga * Ann Arbor Votes To Legalize Psychedelic Plants and Fungi * MindMed Submits Application To Cross-List At NASDAQ * Psychedelics Companies Look To 'Functional Mushrooms' For Opportunities(C) 2020 Benzinga does not provide investment advice. All rights reserved.

In a World Starved for Coronavirus Vaccines, This Stock Could Double, Says Analyst

Tue, 09/22/2020 - 18:52

At last report, the population of the world totaled some 7.8 billion souls. With COVID-19 continuing to run rampant -- indeed, a "second wave" of infections is already starting to swamp health care facilities in France, Spain, and perhaps also the UK -- and most potential vaccines against the coronavirus requiring two shots for complete effectiveness, this means there's an immediate need for more than 15 billion doses of vaccine.Now... who's going to make all those doses?B. Riley FBR analyst Mayank Mamtani makes the case that Novavax (NVAX) has an important role to play in this fight against coronavirus, even if its NVX-CoV2373 vaccine isn't necessarily first to market.Mamtani believes that Novavax's vaccine, which he affectionately refers to as "'2373," ranks among the top six "first wave" candidates for proof against coronavirus, demonstrating superior immunogenicity and reactogenicity, while also  being "refrigerator stable" at temperatures between 2 and 8 degrees Celsius. Competing "mRNA constructs," notes the analyst, often require dry ice to keep them fresh, and temparatures as low as negative 80 degrees Celsius.But effectiveness and superior storage characteristics are just one part of this story.In a world clamoring for production of 15 billion doses -- at least, because if immunity conferred by vaccine is not permanent, then annual immunizations and additional doses may be required subsequently -- manufacturing capacity is easily as important as vaccine effectiveness. In this regard, Mamtani notes with approval Novavax's formal agreement last week to partner with India's Serum Institute of India Private Limited (SIIPL) to expand on its own manufacturing capacity.Mamtani points out that SIIPL , located in the world's second most populous country, is already the largest vaccine manufacturer in the world, producing 1.6 billion doses of various vaccines annually. Its agreement to devote some of its production capacity to Novavax, enough for 1 billion doses annually, promises to double the latter's production capacity to more than 2 billion doses annually within the next nine to 12 months.Even combined with other vaccines being manufactured by other vaccine manufacturers, this will leave the world woefully undersupplied with vaccines against COVID-19. From an investor's point of view, however, this isn't necessarily a bad thing as it means that "demand will continue to outpace supply, at least until the middle of 2021," giving Novavax a certain amount of pricing power despite all the competition it is likely to encounter.What's more, this pricing power, and this demand for Novavax's product, could continue longer than you might think. At a minimum, Mamtani sees demand for COVID-19 vaccines continuing for the next 12-24 months. Indeed, it could take that long just to get a first round of two-dose vaccines manufactured and distributed to everyone who needs them. And as already mentioned, there's also the potential for continuing demand in years to come if it turns out that immunity from coronavirus is not a "one and done" thing, but something that needs to be renewed periodically with annual booster shots.In short, Mamtani thinks investors' decision to sell off Novavax stock by some 30% since early August is a mistake. The analyst continues to view Novavax stock as a "buy," and stands pat on his price target of $257 a share -- more than twice what the shares cost today. (To watch Mamtani's track record, click here)Most on the Street keep a Buy rating, too – in fact, 4 out of the 5 analysts to post a NVAX review over the last 3 months suggest just that – with the remaining one recommending a Sell. NVAX's Moderate Buy consensus rating is backed by a $227.60 price target – suggesting a 104% upside from current levels. (See NVAX stock analysis on TipRanks)To find good ideas for coronavirus stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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