TD Cowen has maintained a Hold rating on Moderna shares (NASDAQ: NASDAQ:MRNA), with a consistent price target of $60.00.
The firm's update came ahead of the biotech sector's third-quarter earnings preview, where adjustments were made to Moderna's financial model.
The revisions to the model included a reduction in the company's projected expenses. Additionally, TD Cowen modified its sales forecast for Moderna's Respiratory Syncytial Virus (RSV) vaccine, bringing the estimate down to $100 million for the quarter.
As a result of these changes, TD Cowen has set a new third-quarter GAAP EPS estimate for Moderna at a loss of ($1.55). Despite these adjustments, the firm has decided not to alter its Discounted Cash Flow (DCF) valuation or the price target for Moderna's stock.
Moderna's financial performance and stock valuation are closely watched by investors, particularly as the company continues to develop its product pipeline, including the RSV vaccine. The updated estimates reflect TD Cowen's latest expectations for the company's near-term financial results.
In other recent news, Moderna faces a lawsuit initiated by GlaxoSmithKline (NYSE:GSK) over alleged infringement of patents related to messenger RNA technology used in Moderna's COVID-19 vaccine, Spikevax.
Moderna reported revenues of $6.7 billion from Spikevax in the last year. Jefferies, an investment firm, has maintained a Hold rating on Moderna but reduced the price target to $55 from $65 due to lowered guidance and competition concerns. Moderna's projected revenues for the third quarter are estimated around $1 billion, with about $540 million from U.S. sales.
Moderna has also appointed Abbas Hussain, former CEO of Vifor Pharma and Global President of GlaxoSmithKline's Pharmaceuticals and Vaccines, to its board of directors. The company has initiated a Phase 3 clinical trial for its investigational norovirus vaccine, mRNA-1403, which will enroll approximately 25,000 participants worldwide. Moderna's updated COVID-19 vaccine, SPIKEVAX®, has received approval from Health Canada for the 2024-2025 season.
Several analyst firms have revised their outlooks on Moderna. Piper Sandler reduced its target for Moderna to $115 from $157, maintaining an Overweight rating.
Oppenheimer downgraded Moderna stocks to a neutral "Perform" status, while RBC Capital reduced its price target for Moderna from $90 to $75. Moderna estimates product sales to be between $3 billion and $3.5 billion for the current year, with projected revenues of approximately $6.0 billion in 2028.
InvestingPro Insights
As Moderna approaches its earnings report, InvestingPro data and tips offer additional context to TD Cowen's analysis. The company's market cap stands at $20.8 billion, reflecting its significant presence in the biotech sector. However, Moderna's financial health presents a mixed picture.
An InvestingPro Tip highlights that Moderna holds more cash than debt on its balance sheet, which could provide financial flexibility as it navigates through challenging times. This aligns with another tip indicating that liquid assets exceed short-term obligations, potentially offering some stability amidst the company's current struggles.
The recent stock performance has been concerning, with InvestingPro data showing a 55.34% price decline over the past three months. This downward trend is consistent with TD Cowen's cautious Hold rating. Additionally, an InvestingPro Tip notes that analysts anticipate a sales decline in the current year, which corroborates TD Cowen's reduced sales forecast for Moderna's RSV vaccine.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips that could provide deeper insights into Moderna's financial situation and market position.
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