NEW YORK (TheStreet) -- Shares of Novavax (NVAX) - Get Report were tanking 85.85% to $1.18 in pre-market trading on Friday after the Gaithersburg, MD-based company's RSV-F vaccine candidate for lower respiratory tract disease failed to meet its primary and secondary endpoints in a clinical trial.
The vaccine didn't reduce the occurrence of all symptomatic respiratory diseases, the vaccine company said in a statement.
Several firms subsequently downgraded Novavax's stock rating this morning.
JPMorgan reduced its stock rating to "neutral" from "overweight" based on the trial results, according to TheFly. The firm added that it sees few near-term events that could restore value and drive the shares higher.
Novavax's stock rating was also lowered to "neutral" from "overweight" at Piper Jaffray. The firm cut its price target to $1 from $14.
Additionally, Citi lowered Novavax's stock rating to "neutral" from "buy" this morning, saying it does not expect results from the company's one outstanding clinical trial until 2019, TheFly reports. The firm decreased its price target to $1.50 from $12.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
The team rates Novavax as a Sell with a ratings score of D. This is driven by a number of negative factors, which it believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks it covers. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally high debt management risk.
You can view the full analysis from the report here: