As if 2021 wasn’t shaping up to be bountiful enough for Moderna (MRNA) stock, along comes another Covid-19 variant to alarm the global community but act as a springboard for the shares.
So far this week, MRNA is up 30%, adding to 2021’s gains — 241% to be exact. In the world of coronavirus stocks, Moderna appears to be the prime beneficiary of the latest Covid scare.
While Moderna’s CEO has already warned the current vaccines might not prove to be very effective vs. what appears to be a fast-spreading variant which also carries a high number of mutations on the spike protein, the market seems to have reacted positively to the company’s swift plan of action to address it.
Moderna already has a program in place to strategize against variants of concern, and it has previously stated it is attempting to stay ahead of the curve as they come to the fore. In fact, the company has two vaccine candidates already in development – MRNA-1273.211 and mRNA -1273.213 – that could deal with some of the mutations found in the Omicron variant. Furthermore, the company has now launched a specific candidate – mRNA-1273.529 – to address Omicron. The vaccine could be ready to move into the testing phase in 60-90 days.
Brookline Capital analyst Leah Rush Cann thinks the company is proving its mettle once again in the global battle to finally tame the pandemic.
“The response by Moderna on Friday to the growing concerns about the Omicron variant demonstrates Moderna’s ability to address SARS-CoV-2 variants of concern, and is very encouraging for addressing Omicron, and continues to support our view that mRNA-1273, and follow-on vaccine candidates, have increasingly superior attributes and that these advantages will make mRNA-1273 and its successors as a preferred COVID-19 vaccine,” the analyst said.
That is not such a surprising assessment from Wall Street’s most prominent MRNA bull; Cann’s $468 price target is the Street’s highest and suggests shares have room for growth of an extra 32% in the year ahead. The analyst’s rating stays a Buy. (To watch Cann’s track record, click here)
Cann’s colleagues have a more downbeat view of the stock’s prospects; based on 6 Buys, 4 Holds and 3 Sells, the analyst consensus rates the stock a Hold. Most think the shares have soared beyond their worth; the $298.17 average target implies they will lose 19% of their value over the coming months. (See Moderna stock analysis on TipRanks)
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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.
