Citi analyst Geoff Meacham maintained a Hold rating on Moderna (MRNA – Research Report) today and set a price target of $32.00.
Geoff Meacham has given his Hold rating due to a combination of factors influencing Moderna’s current financial and strategic position. The company’s recent first-quarter results showed a slight miss in revenue expectations, alongside a notable loss per share, which reflects ongoing seasonal dynamics and cost reduction efforts. While Moderna’s decision to cut costs and re-prioritize capital away from its respiratory franchise is seen as a positive step, the challenges in the respiratory segment, including lower vaccination rates and policy uncertainties, remain a concern.
Moreover, delays in the approval timeline for key products like mRNA-1083 are disappointing, adding to the cautious outlook. On a more positive note, Moderna’s strategic shift towards oncology, with increased focus on non-respiratory revenues, is a promising development. However, the extended timeline for realizing these non-respiratory assets and the fluid views on vaccines in the current market climate contribute to the decision to maintain a neutral stance. Consequently, the target price has been adjusted to $32 from $40, reflecting these considerations.