In a research report released Friday, FBR Capital analyst Vernon Bernardino reiterated an Outperform rating on shares of Novavax, Inc. (NASDAQ:NVAX), with a price target of $12, after the vaccine maker hosted an analyst day to review third-quarter operations and provide an update on its clinical development plans.

Bernardino noted, “We think data, conclusions, and rationale presented were compelling, particularly including a thorough understanding of lessons learned from RESOLVE that defined what additional information is required and how to obtain it. We believe the 84% pullback since the announcement represents a disconnect with identification of this forward path and, therefore, a strong buying opportunity.”

“The plan, in 2017, prioritizes activities generating clinical data, reduces cash burn (work-force reduction expected to save $70M–$100M), and, as a result, extends the financial horizon without sacrificing NVAX’s flexibility to pursue new discovery programs. It formalized plans to advance a Zika virus (ZIKV) vaccine; this strategy, we think, optimally utilizes NVAX’s human capital and ability to invest its limited financial resources,” the analyst continued.

As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Vernon Bernardino has a yearly average loss of -23% and a 22% success rate. Bernardino has a -31% average loss when recommending NVAX, and is ranked #4075 out of 4200 analysts.

Out of the 8 analysts polled by TipRanks, 6 rate Novavax stock a Hold, while 2 rate the stock a Buy. With a return potential of 408.5%, the stock’s consensus target price stands at $7.17.