On Monday, Piper Sandler adjusted its outlook on Moderna (NASDAQ:MRNA) shares, lowering the price target to $69 from the previous $115, while maintaining an Overweight rating on the stock. The revision follows a significant drop in Moderna's share price, which reached a new 52-week low on Friday. This downturn in the stock market has not been observed since the onset of the pandemic and was recently influenced by the nomination of Robert F. Kennedy Jr. to head the Department of Health and Human Services (HHS).
The ongoing decrease in COVID-19 vaccination rates, the underwhelming performance of mRESVIA, and the potential policy uncertainty introduced by RFK Jr. were cited as factors contributing to the current valuation. Despite these challenges, Piper Sandler views the current situation as a favorable opportunity for long-term investment in Moderna.
Moderna's management has reaffirmed its product sales guidance for 2024, projecting revenues between $3 billion and $3.5 billion. Analysts at Piper Sandler anticipate that sales will reach a low point of approximately $2.9 billion in 2025 before rebounding due to the introduction of new products.
Moderna has announced plans to release eight new vaccines and products by 2028, which include the next-generation COVID-19 vaccine mRNA-1283 and mRESVIA for high-risk adults in 2025, as well as a combination flu and COVID-19 vaccine mRNA-1083 expected in 2026.
Further bolstering Moderna's pipeline is the anticipated interim Phase III data for mRNA-1647, which could be reported this year. Additionally, Moderna is expanding its development efforts for mRNA-4157 in combination with Merck (NS:PROR)'s Keytruda. Despite the reduced price target, the firm's confidence in Moderna's stock is reflected in the reiterated Overweight rating.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.