Bubble or no bubble, this is the best stock for AI exposure: analyst
Investing.com - Piper Sandler has reiterated an Overweight rating and $63.00 price target on Moderna (NASDAQ:MRNA), citing expectations for revenue growth to resume amid ongoing developments in RNA medicines. The stock has shown resilience with a 7.58% gain over the past week, though analyst targets range widely from $17 to $135, according to InvestingPro data, which suggests the stock is slightly undervalued at current levels.
The research firm noted that Moderna plans to submit regulatory filings for its flu vaccine candidate mRNA-1010 by January, while its combination flu and COVID vaccine mRNA-1083 is under review in Europe as the company awaits FDA guidance. These pipeline developments are critical as analysts anticipate a 42% sales decline for the current year.
Moderna continues enrollment in the Phase III trial of its norovirus vaccine mRNA-1403, with an interim analysis expected in 2026, and in partnership with Merck, could report Phase III melanoma data on intismeran with KEYTRUDA in the third quarter of 2026, potentially leading to approval in 2027.
The company has completed enrollment in the registrational propionic acidemia trial of mRNA-3927 with data expected in 2026, and plans to initiate a registrational methylmalonic acidemia trial of mRNA-3705.
Moderna ended the third quarter of 2025 with $6.65 billion in cash, has entered a new credit facility, and maintains its guidance to reach break-even by 2028, with growth expected from various pipeline products between 2026 and 2028.
In other recent news, Moderna has announced a strategic plan aiming for a 10% revenue increase by 2026, focusing on expanding its seasonal vaccine offerings. The company is working to grow its vaccine franchise from three to potentially six approved products by 2028. Moderna has also secured a $1.5 billion, five-year debt facility from Ares Management Credit Funds, initially drawing $600 million this quarter. This financing boosts its cash guidance for fiscal year 2025 to between $7.1 billion and $7.6 billion. Alongside these financial moves, Moderna is implementing a $1 billion cost-saving plan, with savings split equally between 2026 and 2027.
UBS has maintained a Buy rating on Moderna, citing a strong pipeline and strategic transition beyond infectious diseases. Meanwhile, Needham has reiterated a Hold rating, noting the financial flexibility provided by the new debt facility. Leerink Partners has increased its price target for Moderna to $18 from $15, maintaining an Underperform rating, while RBC Capital has lowered its price target to $25, maintaining a Sector Perform rating. These recent developments highlight Moderna’s evolving strategies and financial maneuvers as it navigates the current market landscape.
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