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Moderna’s Financial Challenges: Sell Rating Amid Workforce Cuts and Declining Vaccine Revenues

Moderna’s Financial Challenges: Sell Rating Amid Workforce Cuts and Declining Vaccine Revenues

Leerink Partners analyst Mani Foroohar has maintained their bearish stance on MRNA stock, giving a Sell rating on August 1.

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Mani Foroohar has given his Sell rating due to a combination of factors impacting Moderna’s financial outlook. The company has announced a significant workforce reduction, aiming to cut operational expenses by $1.4 to $1.7 billion by 2027. This move is part of a broader restructuring effort to address declining vaccine revenues, which have fallen short of market expectations and decreased significantly year-over-year.
Despite these efforts, the anticipated cost savings and restructuring do not appear to alter Moderna’s near-term financial guidance. The company’s goal of achieving cash break-even by 2028 remains challenging given the current revenue trajectory. These factors contribute to a cautious outlook on the stock, leading to the Sell rating.

According to TipRanks, Foroohar is an analyst with an average return of -8.0% and a 42.58% success rate. Foroohar covers the Healthcare sector, focusing on stocks such as RegenXBio, Moderna, and Rocket Pharmaceuticals.

In another report released on August 1, Bank of America Securities also reiterated a Sell rating on the stock with a $25.00 price target.

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