On Thursday, investment firm Jefferies updated its outlook on Moderna (NASDAQ:MRNA) shares, raising the price target to $125 from the previous $115. The firm has maintained a Hold rating on the NASDAQ:MRNA stock. The adjustment comes amid anticipation of several key developments for the biotechnology company.
The analyst from Jefferies cited several factors influencing the decision. A primary focus is on the upcoming launch of Moderna's Respiratory Syncytial Virus (RSV) vaccine, with a Prescription Drug User Fee Act (PDUFA) date set for May 12, 2023. Confidence in the vaccine's market positioning is high due to its prefilled syringe (PFS) format and potential contracting with pharmacies following approval.
Additionally, the firm noted that Moderna has Phase III data for its Cytomegalovirus (CMV) vaccine expected by the end of 2024, with interim results possibly indicating success. Moderna's optimism about hitting the interim marks could be a significant milestone for the company.
The update further highlighted progress in Moderna's Phase III confirmatory cancer vaccine study for adjuvant melanoma. Enrollment for this study is reportedly accelerating, which could lead to an early filing for accelerated approval later in the year, pending positive outcomes. This development is seen as a positive sign for the company's ongoing dialogue with the Food and Drug Administration (FDA).
Jefferies' revised price target reflects the potential of these upcoming products and milestones for Moderna, as the company continues to expand its vaccine portfolio and explore new therapeutic areas. The Hold rating suggests that while the firm acknowledges the potential positive developments, it advises investors to maintain their current positions until further evidence of success emerges.
InvestingPro Insights
With Jefferies' recent update on Moderna, investors are keen to understand the financial health and market performance of the company. Moderna's aggressive share buyback strategy, as noted in one of the InvestingPro Tips, signals management's confidence in the company's value. This is coupled with the company holding more cash than debt on its balance sheet, indicating a solid financial position to support its ongoing research and development efforts.
From a data perspective, Moderna's current Market Cap stands at 42.34B USD, reflecting its significant presence in the biotech industry. Despite the challenges, including a notable sales decline anticipated by analysts for the current year and weak gross profit margins, Moderna’s stock has shown resilience with a strong return over the last month of 13.45%. The company's performance over the last decade and the last five years has also been robust, with high returns, hinting at its long-term growth potential.
Investors evaluating Moderna's prospects may also consider the InvestingPro Tips that highlight both opportunities and risks. For instance, the company's liquid assets exceed its short-term obligations, but it is not expected to be profitable this year and has not been profitable over the last twelve months. Moreover, Moderna does not pay a dividend, which could be a consideration for income-focused investors.
For those looking to delve deeper into Moderna's financials and stock performance, InvestingPro offers an array of additional tips. There are 11 more InvestingPro Tips available, providing a comprehensive analysis of the company's financial health and market outlook. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription for more detailed insights.
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