Hot on the heels of the FDA granting EUA (emergency use authorization) for Pfizer/BioNTech’s Covid-19 vaccine BNT162b2, last Friday the regulatory body gave the go ahead for Moderna’s (MRNA) offering mRNA-1273.
In recommending the EUA, the FDA committee voted 20 to 0 in the vaccine’s favor, a move which sprung no surprises on Wall Street. Investors acted in time honored fashion and “sold the news” accordingly.
Shipments of the second approved Covid-19 vaccine left a distribution center on Sunday, as its much needed rollout was set in motion.
The company expects to deliver 20 million doses before the end of the year and between 100-125 million in 1Q21.
Oppenheimer analyst Hartaj Singh applauded Moderna’s almost unprecedented achievement.
“The company has been able to achieve in <1 year what has taken other companies 3-5 years to accomplish (bring a product to market),” the 5-star analyst wrote.
Moderna stock has gained a massive 620% year-to-date as investors pinned their hopes on Moderna delivering a successful vaccine, and now they have undoubtedly done just that. While some Street analysts have cautioned the company’s current valuation might be running hot and have questioned the commercial opportunity still at play, Singh is not among them.
In fact, the analyst believes Moderna still represents an underappreciated opportunity. Singh raises his price target on MRNA shares to $178 (from $157), while keeping his Outperform (i.e. Buy) rating intact. Investors can expect returns of 26%, should the analyst’s thesis play out over the coming months. (To watch Singh’s track record, click here)
“We believe mRNA-1273 has already begun to demonstrate its best-in-class profile (distribution/logistics, etc.),” Singh said. “With peer-group stocks like ALXN/REGN/VRTX enjoying appreciation of ~10-40X over a 10-yr (first) product development to peak sales cycle, we believe MRNA still has room to run and that the Street has yet to fully appreciate the scalability of MRNA’s platform… Moderna’s mRNA-1273 EUA experience should also help its other development candidates going forward.”
Granted, not all are on the same page when evaluating the mRNA specialist’s prospects. While the analyst consensus for Moderna is a Moderate Buy, the rating is based on 7 Buys and Holds, each, and 2 additional Sells. Furthermore, the $140 average price target suggests shares will be changing hands at roughly the same price a year from now. (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.
