In a report released yesterday, Tim Anderson from Bank of America Securities reiterated a Sell rating on Moderna (MRNA – Research Report), with a price target of $32.00.
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Tim Anderson has given his Sell rating due to a combination of factors surrounding Moderna’s financial and operational outlook. The company reported fourth-quarter revenues that were largely in line with expectations, but its reliance on COVID-related revenues remains a concern. This dependency poses forecasting challenges, as the revenue streams from COVID are unpredictable. Additionally, the company’s efforts to diversify its revenue through other vaccine programs, such as RSV and CMV, have not shown convincing progress.
Moreover, Moderna faces significant hurdles with its pipeline programs. The FDA has placed a clinical hold on the norovirus vaccine program due to a safety concern, and the flu+COVID combo program requires additional efficacy data for approval. These setbacks, combined with slightly lowered long-term earnings projections and a maintained revenue guidance that fails to inspire confidence in significant growth, underpin Anderson’s cautious stance and the reiteration of an Underperform rating.
In another report released on February 14, Wolfe Research also reiterated a Sell rating on the stock with a $25.00 price target.