Analyst Tim Anderson of Bank of America Securities reiterated a Sell rating on Moderna, retaining the price target of $24.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Tim Anderson has given his Sell rating due to a combination of factors affecting Moderna’s financial outlook. The company’s revenue projections have been adjusted downward, primarily due to a decline in COVID-19 vaccine sales in the United States, which poses a challenge given the company’s reliance on these revenues. Additionally, there is skepticism regarding the diversification efforts into other programs like RSV and CMV, which have yet to demonstrate significant potential to offset the decline in COVID-related income.
Moreover, the company is experiencing a high cash burn rate, which raises concerns about its financial sustainability in the near to intermediate term. The price objective for Moderna’s stock remains below the current trading price, indicating limited upside potential. These factors contribute to the underperformance rating, as the company’s prospects are uncertain amidst ongoing challenges and market conditions.
In another report released on October 17, Wolfe Research also maintained a Sell rating on the stock with a $20.00 price target.