Shares of Moderna Inc. (MRNA) jumped 3.1% to close at $169.26 on May 25 after the company announced that the TeenCOVE study of its COVID-19 vaccine (mRNA-1273) has met its primary immunogenicity endpoint in adolescents.
The study showed no cases of COVID-19 infection in individuals who were administered with two doses of the Moderna COVID-19 vaccine using the primary definition. Furthermore, the vaccine represented an efficacy of 93% in seronegative participants, post 14 days of the vaccination of the first dose, using the secondary CDC case definition of COVID-19, which tested for the milder disease.
The TeenCOVE study included more than 3,700 participants in the age bracket of 12 to less than 18 years in the U.S. Moderna is likely to submit these data to regulators worldwide this June.
Moderna CEO Stephane Bancel said, “We are encouraged that mRNA-1273 was highly effective at preventing COVID-19 in adolescents. It is particularly exciting to see that the Moderna COVID-19 vaccine can prevent SARS-CoV-2 infection. We will submit these results to the U.S. FDA and regulators globally in early June and request authorization. We remain committed to doing our part to help end the COVID-19 pandemic.” (See Moderna stock analysis on TipRanks)
On May 21, Piper Sandler analyst Edward Tenthoff reiterated a Buy rating and a price target of $231 (36.5% upside potential) on the stock.
Tenthoff noted that the mRNA-1273 has been approved by the Ministries of Health in Japan and South Korea, commenting that “overseas approvals and orders are providing a second leg of mRNA-1273 revenue growth.”
Furthermore, the analyst believes that the vaccination is proceeding at a faster pace in America. Therefore, he expects Moderna to generate mRNA-1273 revenues of $13.07 billion in 2021 and $21.25 billion in 2022.
The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 6 Buys, 3 Holds, and 2 Sells. The average analyst price target of $179.50 implies 6% upside potential to current levels. Shares have increased 51.5% so far this year.
Moderna scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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