Moderna Faces Regulatory and Commercial Challenges Amidst Balance Sheet Vulnerabilities and Vaccine Setbacks

In a report released yesterday, Mani Foroohar from Leerink Partners reiterated a Sell rating on Moderna (MRNA – Research Report), with a price target of $20.00.

Mani Foroohar has given his Sell rating due to a combination of factors impacting Moderna’s outlook. One of the primary concerns is the increasingly stringent regulatory environment for vaccines, which poses challenges not only for the approval and recommended use of Moderna’s vaccines but also increases operational expenses. This is particularly concerning given the company’s balance sheet vulnerabilities, which form a significant part of the bearish perspective on the stock.
Additionally, while Moderna has a first-mover advantage in the Flu/COVID combo vaccine space, there are doubts about the commercial viability of this program. The company has faced setbacks, such as the voluntary withdrawal of its combo vaccine application, and there is uncertainty regarding the adherence of a combo vaccine to revised FDA frameworks. Furthermore, investor interest in Moderna’s CMV vaccine has waned following interim trial failures, adding to the skepticism about the company’s future profitability and growth prospects.

In another report released on June 6, Bank of America Securities also maintained a Sell rating on the stock with a $26.00 price target.