U.S. stocks edge higher; solid earnings season continues
Investing.com - BofA Securities has lowered its price target on Moderna (NASDAQ:MRNA) to $24.00 from $25.00 while maintaining an Underperform rating on the stock. The move comes as the stock has declined nearly 19% in the past week, now trading at $27.65, significantly below its 52-week high of $91.99.
The price target reduction reflects BofA’s slightly lower forecasts for the company, combined with a decreased terminal growth assumption of 1.5%, down from the previous 2%, due to increased uncertainty over Moderna’s long-term growth outlook. InvestingPro data reveals that 7 analysts have recently revised their earnings downward, with the company expected to remain unprofitable this year.
BofA analyst Tim Anderson expressed concern that Moderna’s near- and intermediate-term prospects remain largely tied to COVID revenue streams, which the firm finds problematic because of forecasting difficulty.
The research firm reinstated coverage of Moderna with an Underperform rating on December 10, noting it remains unconvinced about Moderna’s other programs, such as RSV and CMV, which are intended to diversify the company’s reliance on COVID revenues.
BofA referenced its recent reports titled "Catalysts in Context" and "Pipeline Preview" for additional information on its Moderna assessment.
In other recent news, Moderna Inc (BMV:MRNA). reported better-than-expected earnings for the second quarter of 2025. The company achieved an earnings per share (EPS) of -2.13, surpassing the forecasted -2.98. Additionally, Moderna’s revenue reached 142 million dollars, exceeding the anticipated 114.4 million dollars. Despite these positive results, the company reduced its future revenue guidance, which may have concerned some investors. In a related development, UBS reiterated its Buy rating on Moderna with a price target of $70.00, even as the company announced further cost reductions for 2025. These cost-cutting measures are generally seen as positive, although the revised revenue guidance could be a point of contention. Investors are closely monitoring these recent developments as they assess Moderna’s future performance.
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