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Piper Sandler maintained its positive stance on Moderna (NASDAQ:MRNA), reiterating an Overweight rating with a price target of $157.00 for the biotechnology company's shares. The endorsement comes as the U.S. Food and Drug Administration (FDA) approved Moderna's updated SpikeVax vaccine, which targets the KP.2 variant of the virus.
The vaccine is expected to be available for distribution within days.
The analyst from Piper Sandler projected sales for SpikeVax to reach $2.85 billion and for the mRESVIA RSV vaccine to hit $162 million in the current year. Moderna has also reported encouraging Phase III data and plans to seek licensure for its mRNA-1010 seasonal flu vaccine and mRNA-1283 next-generation COVID vaccine. Additionally, discussions with regulators are set to begin for a combined flu and COVID vaccine, mRNA-1083, with potential approvals anticipated in 2025.
Further developments from Moderna include the potential release of interim Phase III CMVictory data on its cytomegalovirus vaccine mRNA-1647 within this year.
Moderna is scheduled to host its annual Research and Development (R&D) day on September 12th in New York City. The company reported a robust cash position of $10.8 billion at the end of the second quarter of 2024 and anticipates ending the year with approximately $9.0 billion.
Piper Sandler's reaffirmed Overweight rating and price target reflect confidence in Moderna's financial health and its vaccine development pipeline.
Moderna Inc. maintained its Buy rating from Brookline Capital Markets following the FDA's approval of its latest COVID-19 vaccine targeting the KP.2 variant. The FDA's authorization is expected to enable the company to have the vaccine ready by early fall.
Brookline Capital Markets anticipates that Moderna's COVID-19 vaccine sales will include approximately 15.9 million doses in the U.S. and 19.1 million doses internationally.
The 2024 sales of Moderna's COVID-19 vaccines could reach $2.7 billion, representing 83.2% of the company's total revenue for the year.
Moderna also received approval from the European Commission for its mRNA-based respiratory syncytial virus (RSV) vaccine, mRESVIA®, for adults aged 60 and above. However, the company did experience a net loss and a drop in COVID-19 vaccine sales outside the U.S. in the Q2 of 2024, revising its 2024 net product sales outlook to between $3.0 billion and $3.5 billion.
Analysts have provided mixed reviews, with Deutsche Bank upgrading Moderna shares from Sell to Hold, RBC Capital downgrading from 'Outperform' to 'Sector Perform', and Piper Sandler maintaining an Overweight rating despite a reduced price target.
InvestingPro Insights
In light of Piper Sandler's optimistic outlook on Moderna, it's important to consider some key financial metrics and analyst insights from InvestingPro that may influence investor perception. Moderna's market capitalization stands at $31.15 billion, reflecting the company's significant presence in the biotechnology sector. However, the company's Price/Earnings (P/E) ratio is currently negative at -5.35, indicating that it has been unprofitable over the last twelve months as of Q2 2024. This is aligned with the InvestingPro Tip that analysts do not anticipate the company will be profitable this year.
Despite the challenges, Moderna holds more cash than debt on its balance sheet, which is a positive sign of financial stability and aligns with the company's reported robust cash position. Additionally, the company's liquid assets exceed short-term obligations, suggesting a strong liquidity position that could support ongoing research and development activities. These factors are particularly relevant as Moderna continues to invest heavily in its vaccine pipeline, including the newly approved SpikeVax and other candidates in late-stage clinical trials.
For investors seeking a more comprehensive analysis, there are additional InvestingPro Tips available that provide deeper insights into Moderna's financial health and market performance. These tips can be found at InvestingPro's dedicated Moderna page (https://www.investing.com/pro/MRNA).
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