Moderna stock falls as UBS reiterates Buy rating amid cost cuts

Published 04/08/2025, 15:32
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Investing.com - Moderna (NASDAQ:MRNA) shares fell approximately 7% intraday after UBS reiterated its Buy rating and $70.00 price target on the stock. The biotech company, currently valued at $10.8 billion, has seen its shares decline over 68% in the past year, with the stock now trading near $27.55.

UBS noted that while Moderna announced further cost reductions for 2025, which should be viewed positively, the company also reduced its revenue guidance, potentially disappointing some investors. InvestingPro data reveals that 7 analysts have revised their earnings downwards, with the company currently burning through cash rapidly.

The biotechnology company maintained its forecast of approximately $6 billion in year-end cash for fiscal year 2025 and reaffirmed its expense reduction plans for coming years, including a newly announced operating expense reduction for 2025 and reiterated GAAP operating expense expectations for 2026 and 2027.

Moderna continues to target cash breakeven in 2028, with cost management and return to profitability remaining key focus areas for the company moving forward.

UBS believes that while uncertainty around Moderna’s respiratory franchise persists amid negative sentiment, the current stock price does not fully reflect potential upside from upcoming Phase 3 CMV data expected this fall, and the company’s oncology opportunities remain underappreciated.

In other recent news, Moderna Inc (BMV:MRNA). reported its financial results for the second quarter of 2025, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of -2.13, which was better than the anticipated -2.98. Additionally, Moderna’s revenue reached 142 million dollars, exceeding the forecasted 114.4 million dollars. Despite these positive results, the company’s stock experienced a decline in premarket trading, indicating investor concerns about future challenges and market conditions. These developments highlight the mixed sentiments surrounding Moderna’s financial performance and outlook.

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