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On Friday, Berenberg reaffirmed its Hold rating on Moderna stock (NASDAQ:MRNA) with an unchanged price target of $30.00, as shares traded near $27.03 after declining nearly 35% year-to-date. The decision follows Moderna’s recent earnings report, which presented a combination of commercial challenges and effective cost management. According to InvestingPro data, the company is quickly burning through cash while trading at a low revenue multiple. The company disclosed its first-quarter 2025 results on Thursday, revealing a mixed performance that included signs of commercial weakening counterbalanced by better-than-expected cost control measures.
Moderna’s management has opted to retain its operating expense forecast for the full year 2025. This decision indicates an anticipated increase in expenses over the remaining months, which Berenberg considers to be a cautious stance. The firm acknowledged the biotechnology company’s plans for greater medium-term cost savings, which were announced alongside the quarterly financials. InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 3.67, though it suffers from weak gross profit margins of -85.63%.
The investment bank noted Moderna’s accelerated efforts to reduce its cost base as a positive development. Despite this progress, Berenberg suggested that Moderna may need to further hasten its cost-saving initiatives. The company has set a goal to reach a break-even point on a cash cost basis by the year 2028, a target that Berenberg implies could require more aggressive action.
Berenberg’s analysis of Moderna’s financial outlook reflects a careful approach, as the company navigates the challenges ahead. The firm’s commentary highlights the delicate balance Moderna must strike between managing commercial pressures and implementing cost efficiencies to stay on track with its long-term financial goals.
In other recent news, Moderna Inc (BMV:MRNA). reported its first-quarter 2025 earnings, showing a narrower-than-expected loss, although revenue fell short of forecasts. The company posted an earnings per share of -$2.52, surpassing the anticipated -$3.18, while revenue was $108 million, missing the $115.3 million forecast. Despite the earnings beat, the stock declined in pre-market trading. Moderna has also set a total revenue guidance of $1.5-$2.5 billion for 2025, with anticipated first-half sales of approximately $200 million. The company is targeting cost reductions of $1.4-$1.7 billion by 2027, aiming for cash breakeven by 2028. Additionally, Moderna is advancing its vaccine and oncology pipelines, with upcoming product launches and regulatory approvals expected to drive future growth. The company continues to focus on cost efficiency and has reported a 19% reduction in combined cost of sales, R&D, and SG&A expenses. These developments come amidst a challenging environment, with a significant year-over-year revenue decline of 35%.
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