Moderna’s Underperform Rating: Challenges in Revenue Diversification and Forecasting Amid Pandemic Volatility

Analyst Tim Anderson from Bank of America Securities reiterated a Sell rating on Moderna (MRNA – Research Report) and decreased the price target to $34.00 from $41.00.

Tim Anderson’s rating is based on a combination of factors affecting Moderna’s financial outlook. One significant concern is the company’s reliance on COVID-related revenue, which poses challenges in accurate forecasting due to the volatile nature of the pandemic. Additionally, there is skepticism about the potential of Moderna’s other programs, such as RSV and CMV, to adequately diversify its income streams away from COVID-related products.
Furthermore, the report notes a decrease in revenue estimates for the upcoming years, with a significant reduction in the fourth quarter due to lower sales assumptions. Despite slight increases in EPS due to adjusted cost assumptions, the profit break-even point is projected to remain at 2030, which is later than the company’s guidance. These combined factors, along with a lowered price objective from $41 to $34, contribute to the Underperform rating for Moderna’s stock.