Moderna, Inc. (MRNA) – Moderna Analyst: Coronavirus Vaccine to be Approved, to Record $ 5B + in Orders in Next Years

Modern Inc (NASDAQ: MRN) Stocks are rising above the $ 70 level for the first time since the end of May following comments on the sale of its coronavirus vaccine program.

The Moderna analyst: Jefferies analyst Michael Yee kicked off Moderna’s coverage with a Buy rating and $ 90 target price.

The Modern Thesis: There is a good chance the vaccine will work and get at least an emergency approval in early 2021, Yee said in a note, citing his discussions with key opinion leaders and disclosures made by the company so far.

Given the probability that demand will remain high in the first two years, the analyst estimates billions in sales. This despite the fact that the selling side remains divided on whether Moderna will be successful in its quest for a coronavirus vaccine, he added.

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Key catalysts for stock it’s the Phase 2 readings due in the fall and the possible tentative Phase 3 reading for the end of the year, Yee said.

Jefferies’ $ 90 per share price target gives Moderna a valuation of $ 35 billion. This is based on a valuation of $ 15 billion for the stock, based on three to four times sales, and a platform value of $ 15 billion to $ 20 billion, which is backed by a pipeline consisting of 15 other candidates in the clinic, including 5-10 vaccines and 5-19 other therapeutic programs.

“$ 35 billion in MRNA if you have a new mRNA platform that generated a COVID vaccine in less than a year would be commendable in our opinion,” Yee wrote in the note.

As such, the firm believes the vaccine will be approved and could make more than $ 5 billion in orders in the coming years, and shares will rise.

MRNA price action: Moderna’s shares soared 16.8% to $ 73.14 at press time.