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Investing.com - UBS has reiterated its Buy rating on Moderna (NASDAQ:MRNA) stock with a price target of $70.00, according to a note released Tuesday. The stock, currently trading near its 52-week low at $24.60, has declined over 42% year-to-date. According to InvestingPro analysis, Moderna appears undervalued at current levels, with analyst targets ranging from $15 to $198.
The investment bank’s decision follows a call with a Washington DC-based biopharma lobbyist on September 11 regarding regulatory developments around COVID-19 vaccines.
UBS highlighted the lobbyist’s view that drastic changes to COVID-19 vaccine access remain unlikely, noting signs of support from President Trump, who reportedly sees Operation Warp Speed as a major accomplishment from his first term.
The firm identified two upcoming events that could impact the sector: a September 17 Senate hearing on the firing of former CDC Director Monarez, where some Republican senators are expected to question RFK’s leadership at Health & Human Services.
Additionally, the Advisory Committee on Immunization Practices (ACIP) will meet on September 18-19, with COVID vaccines discussion and potential recommendation votes scheduled for September 19.
In other recent news, Moderna has been actively implementing cost-cutting measures following its second-quarter earnings report. The company has announced a 43% year-over-year reduction in research and development expenses and plans to identify an additional $1 billion in potential cuts over the coming years. Leerink Partners responded by lowering its price target on Moderna stock to $18, maintaining an Underperform rating, and citing these operational expense reductions. Meanwhile, Bernstein has reiterated its Market Perform rating on Moderna, maintaining a price target of $28, acknowledging the company’s efforts to reduce costs.
Additionally, the U.S. Food and Drug Administration has approved updated Covid-19 vaccines targeting strains related to the JN.1 variant, with narrowed eligibility primarily for individuals 65 and older and those with underlying health conditions. In related developments, there are reports of potential plans by the Trump administration to phase out Covid-19 vaccines in the coming months, as suggested by vaccine skeptic Dr. Aseem Malhotra. These reports have led to a decline in Moderna and Pfizer shares, reflecting investor concerns over future vaccine demand.
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