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Moderna Stock Is a Winner, But How Much Higher Can It Go?
Stock Analysis & Ideas

Moderna Stock Is a Winner, But How Much Higher Can It Go?

Future study books will linger long and hard on the tumultuous events of 2020. Among the mountains of interesting information, Moderna (MRNA) is very likely to get a mention.

More specifically, along with Pfizer and BioNTech’s Covid-19 vaccine candidate, BNT162b2, Moderna’s mRNA-1273 could be noted as the first vaccine based on mRNA technology to gain regulatory approval.

And that day could be fast approaching. Last month, Moderna reported data from the vaccine’s late stage study which showed mRNA-1273 had a 94.1% success rate in preventing the coronavirus, far above the 50% threshold required by the FDA to be considered for approval. Since then, the company has filed for emergency use authorization (EUA) and the FDA is set to review mRNA-1273’s data on December 17. The general consensus is that the vaccine will pass the test.

Before the end of the year, Moderna expects to have 20 million doses ready for shipment in the U.S. and the company remains on-track to produce 500 million to 1 billion doses next year.

While Pfizer and BioNTech have set their sights on manufacturing 1.3 billion doses in 2021, Piper Sandler analyst Edward Tenthoff notes how on one vital metric, mRNA-1273 trumps its rival’s offering.

“mRNA-1273 has longer refrigeration shelf life,” the 5-star analyst said. “mRNA-1273 COVID-19 vaccine remains stable at 2-8 degrees C for 30 days. mRNA-1273 remains stable at -20 degrees C for up to 6 months and at room temperature for up to 12 hours. No dilution is required for mRNA-1273 at vaccination site. mRNA-1273 has a potential wider distribution when compared to Pfizer’s -80 degrees C vaccine stability.”

So, good news for Moderna, but what does it all mean for investors? Moderna shares have been on an absolute tear over the past 30 days, up by 130% and adding to the year’s previous haul; Overall, the stock is up by 765% in 2020.

While Tenthoff still rates MRNA a Buy, at current levels, his expects shares to stay range bound for the foreseeable future as indicated by his $166 average price target. (To watch Tenthoff’s track record, click here)

Overall, the rest of the Street thinks shares have surged enough for now. Going by the $126.43 average price target, the stock is set to decline by 25% in the year ahead. Nevertheless, overall, the analyst consensus rates the stock a Moderate Buy, based on 9 Buys, 4 Holds and 2 Sells. (See MRNA stock analysis on TipRanks)

To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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