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Moderna shares rise as Argus lifts price target to $150

Published 06/21/2024, 02:58 AM
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MRNA
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On Thursday, Argus increased its price target on Moderna (NASDAQ:MRNA) shares listed on NASDAQ:MRNA to $150 from the previous $115, while maintaining a Buy rating. The firm's decision follows the U.S. Food and Drug Administration's (FDA) approval of Moderna's mRESVIA, an mRNA respiratory syncytial virus (RSV) vaccine for adults aged 60 and over. This vaccine is the first mRNA vaccine approved for a disease other than COVID-19, signaling a significant milestone for the company.

mRESVIA's approval, which was expedited through a breakthrough therapy designation, positions it as potentially the best-in-class RSV vaccine. Notably, it is the only ready-to-use RSV vaccine available in single-dose prefilled syringes. The approval is part of Moderna's expanding portfolio, which includes a promising pipeline with 40 mRNA development candidates across 47 programs, 43 of which are in clinical studies.

Moderna has also reported encouraging Phase 3 results for its investigational next-generation COVID-19 vaccine and a combination vaccine that targets both COVID-19 and influenza. Additionally, the company has submitted an application for FDA review of its Spikevax 2024-2025 formula, aimed at the SARS-CoV-2 variant JN.1.

The raised price target to $150 reflects an approximate 13% potential return from current stock levels. Argus notes that while the company's pipeline shows promise, any unforeseen negative developments could lead to a significant drop in stock value. Despite this caution, the recent FDA approval and robust pipeline underpin the positive outlook for Moderna's stock.

InvestingPro Insights

In light of Argus's recent price target increase for Moderna, a look at the latest metrics from InvestingPro provides additional context for investors. Moderna's market capitalization stands at a robust $51.6 billion, reflecting its significant presence in the biotech industry. Despite facing a challenging period with revenue declining by 65.78% over the last twelve months as of Q1 2024, the company has demonstrated a strong price performance with a 29.29% return over the last three months and an even more impressive 54.62% return over the last six months.

An InvestingPro Tip to consider is that Moderna holds more cash than debt on its balance sheet, which may offer some financial stability in a volatile market. Additionally, management's strategy of aggressively buying back shares could indicate confidence in the company's future prospects. For investors seeking deeper insights, there are over 10 additional InvestingPro Tips available, which can be explored with the use of coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.

Moderna's current challenges, such as the anticipated sales decline in the current year and weak gross profit margins, are important considerations. However, the company's liquid assets exceeding short-term obligations and a strong return over longer periods, like the last three months, six months, and even the last decade, remain encouraging signs for potential investors. With Moderna's next earnings date on August 1, 2024, investors will be keenly watching for the company's strategic moves to navigate the current market dynamics.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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