Ladenburg analyst Michael Higgins raised the firm's price target on Novavax (NVAX) to $28 from $24 and keeps a Buy rating on the shares after the company identified NVX-CoV2373 as the COVID-19 vaccine candidate to take into clinical development.

The news follows "significant" and "potent" preclinical results, including the induction of neutralizing antibodies and high immunogenicity in established animal models, Higgins tells investors in a research note. Unlike prior pandemics, the analyst is confident there is a market for a COVID-19 vaccine.

Higgins, however, continues to see NanoFlu as Novavax's most valuable asset, which he says produced "impressive" Phase 3 results as a seasonal flu vaccine on March 24.