What happened
Actions of Modern (NASDAQ: MRNA) It fell sharply on Monday, following an analyst cut and positive vaccine test results from a rival drug maker. At the close of trading, its share price was down 12.8% after falling 17.7% earlier in the day.
And that
JPMorgan downgraded its Moderna stock rating from “overweight” to “neutral”, citing concerns that its valuation has been extended after its steamy execution so far in 2020. Before today, Moderna’s stock rose a staggering 385% year to date and 576% over the past year.
Moderna’s shares yielded a portion of its recent earnings on Monday. Image source: Getty Images.
Analysts at the firm also highlighted the continuing uncertainty surrounding Moderna’s candidate for the COVID-19 vaccine, mRNA-1273, and increasing competition among drug makers.
“This stock movement itself is not entirely surprising given the rapid implementation of mRNA-1273, the enormous widespread interest of investors in this program, and the obvious unmet need / opportunity for a COVID-19 vaccine,” JPMorgan analyst Cory Kasimov and his team wrote in a report to investors. “That said, at these levels, we are having a hard time justifying further hike given the uncertainty of the duration / characteristics of the COVID-19 pandemic.”
Now what
It should be noted that JPMorgan raised its 12-month price target for Moderna shares from $ 60 to $ 89. The investment bank’s new price forecast represents potential gains for investors of almost 8%, based on the closing price. de Moderna for $ 82.68.
JPMorgan also noted that it continues to think highly of Moderna’s drug development platform. Kasimov clarified the position of the company:
To be clear, this is not a call for any kind of lowered expectations around the company or mRNA-1273; We remain optimistic about Moderna’s long-term outlook, the disruptive platform (in the space of vaccines and others), and the prospects of being one of the first companies to launch a COVID-19 vaccine to the market.
Still, Moderna faces formidable competition in the coronavirus vaccine career. As an example, an experimental COVID-9 vaccine developed by the University of Oxford and AstraZeneca it generated “robust immune responses” in all participants in their early-stage trials. The news was announced Monday morning and undoubtedly contributed to the drop in Moderna’s stock price.
