Citi analyst Geoff Meacham maintained a Hold rating on Moderna yesterday and set a price target of $28.00.
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Geoff Meacham’s rating is based on Moderna’s strategic focus on its pipeline and financial outlook. The company is concentrating on its seasonal vaccine franchise, oncology, and rare disease therapies, which are in late-stage or registrational studies. This shift is essential for reducing reliance on COVID-19 sales, but it also introduces a degree of uncertainty as these new ventures need time to mature and generate significant revenue.
Additionally, while Moderna has made strides in reducing cash costs and securing a $1.5 billion debt facility, the anticipated cash breakeven is not expected until 2028. The volatility in the respiratory vaccine market and declining COVID vaccination rates add further complexity to the financial landscape. These factors contribute to a cautious outlook, justifying the Hold rating as investors await clearer signs of commercial success from the new initiatives.
Meacham covers the Healthcare sector, focusing on stocks such as Eli Lilly & Co, Regeneron, and Vertex Pharmaceuticals. According to TipRanks, Meacham has an average return of 6.9% and a 56.49% success rate on recommended stocks.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $30.00 price target.