Piper Sandler adjusted its price target for Moderna (NASDAQ:MRNA) shares, reducing it to $115 from the previous $157, while retaining an Overweight rating on the stock. The adjustment follows Moderna's recent annual R&D Day, during which the company set a goal to achieve 10 mRNA product approvals by 2027.
Moderna outlined plans to submit filings for several vaccines, including its next-generation COVID vaccine mRNA-1283, a combined flu and COVID vaccine mRNA-1083, and mRESVIA for high-risk adults.
Moderna also anticipates reporting interim Phase III CMVictory data on its mRNA-1647 candidate within the year and is preparing to commence a Phase III trial for its norovirus vaccine mRNA-1403.
Additionally, Moderna, in collaboration with Merck, has finished enrolling participants for the Phase III INTERPATH-01 trial, which is investigating the combination of mRNA-4157 and KEYTRUDA in treating melanoma, with further development expected across various cancers.
The company is also initiating pivotal cohorts for its mRNA-3927 treatment in PA and mRNA-3705 in MMA. Financial guidance from Moderna estimates product sales to be between $3 billion and $3.5 billion for the current year and between $2.5 billion and $3.5 billion in 2025.
However, the forecast for reaching cashflow breakeven has been deferred to 2028, with projected revenues of approximately $6.0 billion.
Moderna's financial position remains robust, with the company reporting a cash reserve of $10.8 billion at the end of the second quarter of 2024, which is expected to be sufficient to achieve cashflow breakeven.
Despite the reduction in the price target, Piper Sandler reaffirmed its Overweight rating on Moderna's stock, signaling confidence in the company's long-term growth potential.
InvestingPro Insights
As Moderna aims to navigate through its ambitious targets and product pipelines, real-time data from InvestingPro provides a snapshot of the company's current financial health. With a market capitalization of $26.78 billion, Moderna's valuation reflects the market's tempered expectations following a significant revenue decline of 52.6% in the last twelve months as of Q2 2024. This contraction is mirrored in the company's gross profit margin, which stands at a negative 62.99%, indicating challenges in maintaining profitability.
InvestingPro Tips highlight that Moderna holds more cash than debt, a positive sign for the company's financial stability. Additionally, the Relative Strength Index (RSI) suggests that the stock is currently in oversold territory, which could interest investors looking for potential entry points. However, it's important to note that 11 analysts have revised their earnings estimates downwards for the upcoming period, suggesting caution. For readers interested in deeper analysis, there are over 13 additional InvestingPro Tips available, which can provide further insights into Moderna's stock performance and outlook. The InvestingPro Fair Value estimation stands at $86.87, providing a data-driven perspective on the stock's potential value.
For investors and analysts keeping a close eye on Moderna's journey, these metrics and tips offer a more comprehensive understanding of the company's current market position and future challenges. As Moderna continues to invest in R&D and expand its product offerings, these insights will be crucial in assessing the company's ability to meet its financial goals and deliver on its strategic objectives.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.