The COVID-19 pandemic has seen its presence linger, with increased viral circulation causing mutations and variants to spring up. These new strains have underlined and cemented the need for effective vaccines, and Moderna, Inc. (MRNA) is considered to be at the forefront of that market. The biotech company has seen its valuation nearly double since mid-July, and due to its strong pipeline is now taking on more of a reputation as a “platform technology,” or disruption company. (See Moderna stock charts on TipRanks)
Reporting on the firm’s bullish outlook is Michael Yee of Jefferies Group, who wrote that its growing and healthy pipeline “would make most investors dizzy.” MRNA has several active programs, including vaccines and therapeutic drugs, in the works, and has the ability to possibly change the way typical research and development is conducted.
Yee assigned a Hold rating on the stock, and raised his price target to $485 from $425. This new target suggests a potential 12-month upside of 7.93%.
Despite bearish and less than optimistic opinions coming from healthcare professionals, the four-star analyst expects that Moderna’s new speculative investors will continue to value the company for its upcoming treatments. This would be in contrast to its face value status as a vaccine company.
Regarding its COVID-19 vaccine, Yee mentioned it may be one of the most effective and durable of its peers. The company has submitted its booster shot data to the FDA for review and hopes for a general recommendation. If its COVID-19 vaccine will be put into use on a recurring basis, Moderna is to see handsome profits in its future.
According to Yee, MRNA’s COVID-19 vaccine data “de-risks its entire vaccine pipeline,” meaning the company would be diversified enough to sustain setbacks among its more nascent programs.
Although he is bullish, Yee rated the stock a Hold due to its high valuation.
On TipRanks, MRNA has an analyst rating consensus of Hold, based on 4 Buy, 8 Hold, and 2 Sell ratings. The average Moderna price target is $305.91, reflecting a possible 12-month downside of -31.93%. MRNA closed Friday trading at a price of $449.38 per share.
Disclosure: At the time of publication, Brock Ladenheim did not have a position in any of the securities mentioned in this article.
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