Piper Sandler maintains overweight rating on Moderna stock

Published 02/06/2025, 12:42
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On Monday, Piper Sandler analysts reaffirmed their Overweight rating on Moderna (NASDAQ:MRNA) stock, maintaining a price target of $69.00. According to InvestingPro data, analyst targets for the stock range from $20 to $198, reflecting significant market uncertainty. The stock has experienced substantial volatility, declining over 81% in the past year. This decision follows the U.S. Food and Drug Administration’s approval of Moderna’s new COVID-19 vaccine, mNEXSPIKE (mRNA-1283), for adults over 65 and individuals aged 12 to 64 with specific risk factors outlined by the CDC.

The analysts anticipate Moderna’s COVID-19 vaccine revenues to reach $1.77 billion in the current year. Revenue projections align with InvestingPro data showing a 35% expected sales decline for fiscal 2025. The company maintains a strong balance sheet with more cash than debt, though it’s currently burning through cash reserves rapidly. Additionally, Moderna has voluntarily withdrawn the Biologics License Application for its combination flu-COVID vaccine, mRNA-1083, and plans to resubmit it with Phase III data on the mRNA-1010 flu vaccine expected by mid-2025.

Last week, Moderna shared positive results from Phase I/II trials of its H5 avian flu vaccine, mRNA-1018. Despite the promising data, the U.S. Department of Health and Human Services canceled a $590 million award intended for the vaccine’s late-stage development.

Moderna is also awaiting Phase III data on its CMVictory vaccine, mRNA-1647, expected later this year. As of the end of the first quarter of 2025, Moderna reported having $8.4 billion in cash reserves. With a current ratio of 4.22, the company’s liquid assets significantly exceed its short-term obligations. For deeper insights into Moderna’s financial health and additional ProTips, visit InvestingPro, where you’ll find comprehensive analysis in the Pro Research Report, part of our coverage of over 1,400 US stocks.

In other recent news, Moderna, Inc. disclosed promising interim data from its Phase 1/2 study of the mRNA-1018 vaccine for H5 avian influenza, showing a strong immune response in participants. However, the U.S. Department of Health and Human Services has decided not to continue funding its late-stage development. Additionally, Moderna has submitted an updated COVID-19 vaccine formula, Spikevax 2025-2026, to the U.S. Food and Drug Administration for review. This new formula targets the SARS-CoV-2 variant LP.8.1, aligning with FDA guidance.

Furthermore, Brookline Capital Markets maintained its Buy rating for Moderna stock, with a $198 target, after the company withdrew and plans to resubmit its Biologics License Application for the mRNA-1083 flu/COVID combination vaccine. Moderna’s withdrawal was strategic, allowing for the incorporation of new efficacy data from ongoing trials. Meanwhile, the FDA has announced a requirement for new trials for COVID-19 boosters for healthy individuals under 65, which could impact the availability of these boosters.

Despite these regulatory challenges, Moderna continues to focus on pandemic preparedness and advancing its vaccine portfolio. The company remains committed to using its mRNA platform to address emerging health threats, as evidenced by its ongoing efforts in vaccine development and regulatory submissions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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