For a while, Moderna (NASDAQ:MRNA) was on top of the world. It was one of just a handful of healthcare stocks that developed a COVID-19 vaccine, and that gave it an incredible edge thanks to a massive market base. With the pandemic mostly behind us, though, there’s a lot less place for Moderna to thrive. However, it’s up over 7% in Monday afternoon’s trading thanks to new perspective from Cowen.
Cowen, via analyst Tyler Van Buren, upgraded Moderna to a Buy, noting that the 2023 expectations the firm posted are “reasonable.” And, even though almost everyone who wants a coronavirus vaccine already has it, there’s still room for further sales from boosters and the like. In fact, Van Buren posits that sales could reach $7 billion to $8 billion, which is more than Moderna’s own outlook that suggests a further $5 billion in sales. Plus, Moderna has other tools in its toolbox; the FDA is currently considering one of its vaccine candidates to take on the respiratory syncytial virus (RSV) and should have a decision in May.
Moderna also announced plans to open up a Seattle satellite office, which should give it some new technological solutions to draw on and advance development. However, it may have to take on a patent lawsuit in the coming weeks; Arbutus Biopharma (NASDAQ:ABUS) and Genevant Sciences targeted Moderna with such a suit. Moderna tried to shift the blame to the U.S. government, but a judge declined.
Nevertheless, Moderna enjoys solid support among other analysts, as it’s currently rated as a Moderate Buy based on nine Buys, five Holds, and one Sell assigned in the past three months. Furthermore, with an average price target of $222.86, Moderna stock currently offers 50.83% upside potential.
