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Moderna Gains 5% on Vaccine Recommendation by CDC
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Moderna Gains 5% on Vaccine Recommendation by CDC

Story Highlights

The CDC’s advisory committee unanimously voted for the approval of Modern’s COVID-19 vaccine for children and adolescents between the ages of six and 17 years old.

Moderna (MRNA) shares jumped over 5% on June 23 after a group of advisers to the U.S. Centers for Disease Control and Prevention (CDC) unanimously voted and recommended the use of Moderna’s COVID-19 vaccine for children between the ages of six and 17 years.

The positive news comes on the heels of the U.S. Food and Drug Administration (FDA) announcing on June 14 that its advisors recommended the authorization of Moderna’s COVID-19 vaccine with a unanimous 22-0 vote for children in the same age group.

Subsequent to the FDA and CDC approval, Moderna’s vaccine will become the second to Pfizer (PFE)-BioNTech’s (BNTX) COVID vaccine, which received authorization for the same age group in October 2021.

Wall Street’s Take

On June 22, Piper Sandler analyst Edward A. Tenthoff reiterated a Buy rating on Moderna with a price target of $214 (49.38% upside potential).

Tenthoff stated, “The FDA granted EUA for SpikeVax (mRNA-1273) in children and teens from 6 months to 17 years of age.”

He further highlighted that Moderna already has SpikeVax advanced purchase agreements (APAs) worth $21 billion this year.

The Wall Street community is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on five Buys, five Holds, and one Sell. The average Moderna price target of $221 implies 54.25% upside potential to current levels.

Positive News Sentiment

News sentiment for MRNA is Positive, based on 84 articles over the past seven days. 75% of the articles have Bullish sentiment, compared to a sector average of 63%.

Conclusion

Though the approval is positive, it may not create a huge growth driver as the Pfizer/BioNTech vaccine was authorized for children between the ages of five and 11 in October last year.

Furthermore, according to data from the CDC, 30% of those between the ages of five and 11 and 60% of those between the ages of 12 and 17 are already fully vaccinated in the United States.

However, back-to-back approvals both by the FDA and the CDC do alleviate the earlier concerns of the risk of heart-inflammation conditions, including myocarditis and pericarditis associated with Moderna’s vaccine.

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