Trump meets Zelenskiy, says Putin wants war to end, mulls trilateral talks
On Wednesday, HSBC analyst upgraded Moderna (NASDAQ:MRNA) stock from Reduce to Hold, setting a price target of $82.00. The adjustment comes after the company's revenue forecast for 2024 was lowered, mainly due to a weaker than expected COVID-19 vaccine revenue outlook.
Moderna's second mRNA-based vaccine, mRESVIA, received FDA approval earlier this year. However, the analyst noted that current evidence suggests mRESVIA may not perform as well compared to competing products that were available before the season.
This assessment follows the June 2023 Advisory Committee on Immunization Practices (ACIP) meeting, which revised the recommendations for RSV vaccination in older adults, leading to a reduced market outlook.
The reduced market prospects for mRESVIA were a key factor in the previous Reduce rating, and this concern appears to have manifested as predicted. The analyst's commentary reflects a shift in the perceived risk associated with Moderna's stock.
Looking forward, the analyst pointed out that Moderna's investment narrative is likely to be more dependent on the progress and potential success of its cancer vaccine. The update in the rating and price target reflects a reevaluation of the company's position in light of recent developments and future prospects.
In other recent news, Moderna received FDA approval for its updated SpikeVax vaccine targeting the KP.2 variant of the virus. The vaccine is expected to be available for distribution soon. Piper Sandler maintained its Overweight rating for Moderna, projecting sales for SpikeVax to reach $2.85 billion.
Moderna also reported encouraging Phase III data for its mRNA-1010 seasonal flu vaccine and mRNA-1283 next-generation COVID vaccine, planning to seek licensure for these.
The European Commission approved Moderna's mRNA-based respiratory syncytial virus (RSV) vaccine, mRESVIA®, for adults aged 60 and above. However, Moderna experienced a net loss and revised 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. These are the recent developments for Moderna.
InvestingPro Insights
As Moderna navigates a changing market landscape, real-time data and expert analysis provide a clearer picture of the company's financial health and stock performance. According to InvestingPro, Moderna holds a market capitalization of $30.36 billion, signaling the significant scale of the company despite recent challenges. The company's stock price has been volatile, with a 1-month total return showing a substantial decline of 35.32%, which aligns with the analyst's concerns about the stock's recent performance. Moreover, the company's P/E ratio stands at -5.13, reflecting its current lack of profitability.
InvestingPro Tips highlight that Moderna carries more cash than debt, which could provide some financial flexibility in uncertain times. Additionally, the Relative Strength Index (RSI) suggests that the stock is in oversold territory, possibly indicating a potential rebound or at least a stabilization of the stock price in the near term. However, it is important to note that 11 analysts have revised their earnings estimates downwards for the upcoming period, which may need to be considered when evaluating the stock's future trajectory.
For those looking to delve deeper into Moderna's financials and stock analysis, InvestingPro offers a suite of additional tips, with 14 more insights available to help investors make informed decisions. To explore these further, readers might consider visiting https://www.investing.com/pro/MRNA for a comprehensive view of Moderna's investment potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.