On Friday, Jefferies maintained a Hold rating on Moderna shares (NASDAQ:MRNA), with a price target of $50.00. The firm addressed concerns regarding recent investor nervousness, which may stem from the Robert F. Kennedy (RFK) situation. Management at Moderna believes that while the RFK issue has caused some unrest, it is unlikely to result in drastic measures against vaccines. Moreover, the company is of the opinion that transparency regarding this matter is beneficial and could ultimately have a positive long-term effect.
The firm noted that some investors sense the market might be approaching a short-term peak in negativity related to the RFK issue and could potentially rebound. However, there remains a sense of apprehension among investors concerning the structural challenges and the profitability of Moderna. These concerns persist as the company anticipates critical data on various fronts, including the cytomegalovirus (CMV) vaccine, flu/covid vaccine filings, and potential interim data in the second half of 2025.
Despite the current investor sentiment, the analyst highlighted the upcoming milestones as significant events for Moderna. The company is waiting for data on its CMV vaccine, alongside filings for its flu and covid vaccines. Additionally, there is anticipation for potential interim data, which could influence the company's trajectory in the latter half of 2025.
The hold rating suggests that Jefferies advises investors to maintain their current position on Moderna stock until these uncertainties are resolved. The firm's reiteration of the $50.00 price target reflects a consistent valuation based on the firm's analysis and the information available at this time.
In summary, while the RFK-related concerns have introduced some volatility and investor skepticism, Jefferies believes that greater transparency from Moderna could be advantageous in the long run. The market will be closely watching for the upcoming data releases and regulatory filings that are expected to shape the future of Moderna's stock performance.
In other recent news, Pfizer (NYSE:PFE) has reported a significant 32% operational growth in its third-quarter earnings for 2024, with total revenues reaching $17.7 billion. This strong financial performance led the company to raise its full-year revenue guidance. Pfizer has also announced the appointment of Chris Boshoff as its new Chief Scientific Officer and President of Research & Development, effective January 1, 2025. Dr. Boshoff will succeed Dr. Mikael Dolsten, marking a crucial leadership transition in the company.
In other developments, Pfizer is considering the sale of its hospital drugs business, Pfizer Hospital, as part of a strategy to divest non-core assets. The company has engaged Goldman Sachs to evaluate interest from potential buyers. On a separate note, Moderna Inc (BMV:MRNA). reported a profitable third quarter, driven by robust sales of its COVID-19 vaccine, Spikevax, significantly surpassing analysts' estimates.
InvestingPro Insights
While the article focuses on Moderna, it's worth considering the broader pharmaceutical landscape, particularly Pfizer, a key player in the vaccine market. According to InvestingPro data, Pfizer's market cap stands at $145.75 billion, reflecting its significant presence in the industry. Despite recent challenges, Pfizer maintains a strong dividend yield of 6.69%, which could be attractive to income-focused investors in the current market environment.
InvestingPro Tips highlight that Pfizer has raised its dividend for 14 consecutive years and has maintained dividend payments for an impressive 54 consecutive years. This consistent dividend history underscores the company's financial stability, even as the vaccine market faces uncertainties.
It's noteworthy that Pfizer's stock is trading near its 52-week low, with a P/E ratio (Adjusted) of 14.24 for the last twelve months as of Q3 2024. This could present a potential opportunity for value investors, especially considering that analysts predict the company will remain profitable this year.
For those interested in a deeper analysis of Pfizer and other pharmaceutical companies, InvestingPro offers 11 additional tips, providing a comprehensive view of the sector's investment landscape.
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