- The Nasdaq announced Monday that Moderna will be added to its Nasdaq 100 index in July.
- Moderna’s shares rose as much as 18% on Monday.
- On Monday, Jefferies kicked off Moderna’s coverage with a “buy” rating and a target price of $ 90 over the approval potential of the pharmaceutical company’s COVID-19 vaccine.
- That represents 45% higher from where Moderna’s shares closed on Friday. Jefferies also believes that if the COVID-19 vaccine is approved, it could generate more than $ 5 billion in annual sales at its peak.
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Moderna shares rose as much as 19% to $ 74.45 on Monday on the news that it will be added to the Nasdaq 100 and a bullish analyst update.
On Monday morning, the Nasdaq announced that Moderna will be added to its Nasdaq 100 index before the market opens on July 20. Moderna will replace Grupo CoStar in the index, according to a press release.
In addition, Jefferies began coverage of the pharmaceutical company on Monday with a “buy” rating and a target price of $ 90, which is 45% higher from where the shares closed on Friday. Moderna’s shares rose as much as 18% on Monday.
The bullish rating depends on the performance of Moderna’s COVID-19 vaccine and large government supply contracts, wrote Jefferies stock analyst Michael Yee in a note Monday.
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“We believe there is a good chance that the Moderna vaccine will work and obtain at least one emergency use authorization in 2021,” Yee wrote. “We believe that a viable vaccine can generate billions in sales, which we consider reasonable given that there would be high demand in the first 1-2 years.”
In the first full year of sales of its potential vaccine, the Jefferies model shows that it could generate $ 2 billion worldwide if approximately 50 million people receive the vaccine at $ 50. According to the note, this could grow to as high as peak of $ 5 billion between 2025 and 2026.
There’s also an added bonus, according to Yee, if significantly more people get the vaccine and the price goes up. “This can quickly go up to huge amounts of $ 10-20B + in theory,” Yee said.
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There are other catalysts that could drive Moderna’s actions higher, including the release of Phase 1 details, preliminary data from the Phase 2 study of patients in mid-2020, and potential Phase 3 prevention data this year or next. , or advance authorization of emergency use or accelerated approval of your COVID-19 vaccine.
Moderna is one of many pharmaceutical companies and biotech firms competing to develop a coronavirus vaccine. The company has a study of 30,000 late-stage people that will begin sometime in July.
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