Imperial Petroleum stock falls after announcing $60M share offering
Investing.com - Leerink Partners has raised its price target on Moderna (NASDAQ:MRNA) to $18.00 from $15.00 while maintaining an Underperform rating following the company’s annual Investor Day. This comes as Moderna trades at $22.36, near its 52-week low of $22.32, with shares down 46.22% year-to-date. InvestingPro analysis suggests the stock is currently undervalued compared to its Fair Value.
Moderna secured a 5-year term loan facility for up to $1.5 billion from Ares Management Credit Funds, with an initial draw of $600 million this quarter. This financing has increased the company’s FY25 cash guidance to $7.1-7.6 billion, with additional draws available through 2027 and 2028 contingent on regulatory milestone achievements. InvestingPro data shows Moderna holds more cash than debt on its balance sheet, with a comfortable current ratio of 3.93, though the company is quickly burning through cash.
The company reiterated its FY25 revenue guidance of $1.6-2 billion, including $300-700 million expected in Q4 2025, with U.S. COVID vaccination rates representing a key variable. Moderna also maintained its FY25 GAAP operating expense guidance of $5.2-5.4 billion.
For 2026, Moderna expects 10% revenue growth driven by partnerships in the UK, Canada, and Australia, continued mNexspike uptake in the U.S., and global expansion of mNexspike. The company reduced its 2026 GAAP cash cost guidance from $5.5 billion at midpoint to $4.9 billion and lowered its 2027 estimate from $4.9 billion to $4.2-4.6 billion.
Moderna plans to achieve cost savings through optimization of its global manufacturing network to improve gross margin by over 10% over the next three years, along with disciplined cost management and R&D pipeline prioritization, which includes discontinuing several programs while pausing others until reaching cash break-even, expected by 2028.
In other recent news, Moderna has announced a strategic plan aimed at achieving up to 10% revenue growth by 2026. The company intends to expand its seasonal vaccine portfolio from three to potentially six approved products by 2028. This growth strategy includes leveraging cash from existing products to fund new ventures in oncology and rare diseases, with an expectation to reach cash breakeven by 2028. Additionally, Moderna has secured a $1.5 billion credit facility from Ares Management, providing financial flexibility to manage future uncertainties. This facility includes a $600 million initial term loan and further options contingent on regulatory milestones.
RBC Capital has adjusted its price target for Moderna stock from $28 to $25, maintaining a Sector Perform rating. This revision follows Moderna’s announcement of $1 billion in cost savings and a $1.5 billion debt deal. In a move to bolster its manufacturing capabilities, Moderna is investing over $140 million to expand its drug product facility in Norwood, Massachusetts, creating hundreds of biomanufacturing jobs. These developments reflect Moderna’s focus on long-term growth and operational efficiency.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.