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Analyst maintains price target and rating on Moderna stock, stays positive

EditorNatashya Angelica
Published 27/06/2024, 16:24
© Reuters

On Thursday, Moderna Inc. (NASDAQ:MRNA) maintained its Overweight rating with a $214.00 stock price target according to Piper Sandler. The firm's optimism remains despite Moderna's shares experiencing a dip due to concerns over the long-term efficacy of its RSV vaccine, mRESVIA. The vaccine's effectiveness was observed to decrease from an initial 83.7% to 47.4% at the 24-month mark.

The CDC's Advisory Committee on Immunization Practices has recommended mRESVIA for adults aged 75 and above, as well as high-risk individuals between 60 and 74 years old. This recommendation places Moderna's RSV vaccine alongside Pfizer (NYSE:PFE)'s ABRYSVO and GlaxoSmithKline (NYSE:GSK)'s AREXVY in the recommended category for these age groups.

Despite the decline in mRESVIA's efficacy over time, Moderna has projected at least $4.0 billion in total product sales for the current year. Analysts at Piper Sandler have estimated revenues of approximately $3.57 billion from Moderna's COVID-19 vaccine, Spikevax, and around $450 million from mRESVIA sales.

Looking ahead, Moderna is preparing for the licensure of several vaccines in 2025, including mRNA-1010 for seasonal flu, mRNA-1283 as a next-generation COVID vaccine, and mRNA-1083, a combination flu and COVID vaccine. Piper Sandler's reiteration of the Overweight rating and $214 price target reflects confidence in Moderna's pipeline and commercial prospects.

In other recent news, Moderna has seen several significant developments. Argus increased its price target on Moderna shares to $150, following the FDA's approval of the company's mRESVIA, an mRNA respiratory syncytial virus (RSV) vaccine. This marks the first mRNA vaccine approved for a disease other than COVID-19. Meanwhile, TD Cowen maintained a Hold rating on Moderna shares, with a focus on the upcoming launch of mRESVIA, targeted at the $6-8 billion adult RSV market.

Moderna has also reported successful Phase 3 results for its mRNA-1283 vaccine and a combination vaccine that targets both COVID-19 and influenza. Jefferies reiterated a Buy rating on Moderna shares after the release of Phase III data for Moderna's combined Covid-19 and influenza vaccine. RBC Capital Markets upgraded Moderna's shares following the FDA approval of mRESVIA.

Furthermore, Moderna's investigational mRNA-1083 vaccine, which targets both influenza and COVID-19, achieved its primary endpoints in a Phase 3 trial, showing stronger immune responses compared to existing flu and COVID-19 vaccines in adults aged 50 and above. These recent developments highlight Moderna's continued efforts to innovate in the vaccine space.

InvestingPro Insights

As Moderna Inc. (NASDAQ:MRNA) navigates through the challenges and opportunities ahead, recent metrics and expert analysis from InvestingPro provide a clearer picture of the company's financial health and market position. According to InvestingPro data, Moderna currently holds a market capitalization of $47.08 billion.

Despite facing a significant revenue decline of -65.78% over the last twelve months as of Q1 2024, the company's management has been proactively responding with share buybacks, signaling confidence in the company's value. Moreover, Moderna's robust cash position, with more cash than debt on its balance sheet, offers a cushion against short-term market fluctuations and underscores the company's financial stability.

InvestingPro Tips highlight that while analysts are anticipating a sales decline in the current year, Moderna's liquid assets still exceed its short-term obligations, suggesting a strong liquidity position. The company's stock price has been quite volatile, with a -26.51% return over the last month, yet it has demonstrated a notable high return over the last decade.

For investors considering a deeper dive into Moderna's financials and market prospects, InvestingPro offers additional insights and tips—there are 12 more InvestingPro Tips available for MRNA, which can be accessed with a subscription. Interested readers can use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enriching their investment strategies with premium analysis and data.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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