Cautious Outlook on Moderna: Sell Rating Amid Financial and Legal Challenges

Leerink Partners analyst Mani Foroohar has maintained their bearish stance on MRNA stock, giving a Sell rating on May 21.

Mani Foroohar has given his Sell rating due to a combination of factors impacting Moderna’s financial outlook. The recent approval of Moderna’s next-generation COVID vaccine, mNexspike, was anticipated and aligns with expectations, offering only a modest boost to the stock. However, the company’s long-term financial health is under pressure due to a challenging gross margin profile and operational expenses, which complicate its path to achieving cash break-even by 2028.
Additionally, ongoing intellectual property litigation poses a significant financial risk, potentially necessitating substantial capital raises at unfavorable valuations if outcomes are adverse. These factors collectively contribute to a cautious outlook on Moderna’s stock, prompting the Sell recommendation.