Moderna (NASDAQ:MRNA)'s shares are on track for a record nine-day losing streak, experiencing a significant 23.5% decrease due to investor fears over slowing sales of its COVID-19 vaccine. These concerns have been further influenced by Pfizer Inc (NYSE:PFE).’s recent sales warning.
UBS analyst Eliana Merle, argues that investors are overly focused on the COVID-19 situation while disregarding Moderna's reaffirmed 2023 vaccine-revenue guidance and its underappreciated drug pipeline. Merle trimmed her stock-price target to $178 from a higher previous target, but maintains her buy rating for the company, indicating a potential upside of 122%.
Merle believes that the Q3 revenue figures are of lesser importance as most of Moderna's H2 2023 revenues are projected to come in Q4. She also posits that even if annual COVID-19 sales expectations were halved and no earnings from flu or RSV vaccines were accounted for, the stock would still be worth $50 to $55 per share.
According to InvestingPro data, Moderna's market capitalization stands at 30.24B USD. The company's P/E ratio is 25.39, indicating a relatively high valuation. Furthermore, the company's revenue for the last twelve months (LTM2023.Q2) is 10.65B USD, and the gross profit for the same period is 1803M USD. This data suggests that Moderna has a solid financial standing, despite the recent decrease in share price.
InvestingPro Tips also provides some insights into Moderna's current situation. The company's management has been aggressively buying back shares, indicating their confidence in the company's future. Additionally, Moderna holds more cash than debt on its balance sheet, which is a positive sign for investors. However, analysts have revised their earnings downwards for the upcoming period and anticipate a sales decline in the current year. This is in alignment with the concerns raised by investors over slowing sales of the COVID-19 vaccine.
In terms of stock performance, Moderna's shares have taken a significant hit over the last week, with the 1-week price Total Return at -12.55%. Over the last month and the last three months, the returns have been -19.59% and -36.41% respectively, according to InvestingPro data.
Despite these challenges, Moderna remains a prominent player in the Biotechnology industry. The company's liquid assets exceed short-term obligations, and it has been profitable over the last twelve months. However, the stock price movements are quite volatile, and the company does not pay a dividend to shareholders.
For more insights and tips on investing, consider exploring InvestingPro. The platform offers 21 additional tips on Moderna and other companies, helping investors make informed decisions.
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