Moderna, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst David Dai from UBS maintained a Buy rating on the stock and has a $40.00 price target.
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David Dai’s rating is based on a combination of factors despite the recent setbacks in Moderna’s CMV vaccine development. Although the Phase 3 study of mRNA-1647 did not meet its primary endpoint, leading to the discontinuation of the congenital CMV program, Dai remains optimistic about Moderna’s future prospects. The analyst believes that the company’s oncology pipeline, particularly the fully enrolled Phase 3 study of intismeran autogene and the anticipated readouts from other cancer vaccine trials, presents significant upside potential.
Furthermore, Dai acknowledges the company’s strategic adjustments in response to the CMV program’s discontinuation, including reduced operating expenses and a revised revenue forecast. Despite these challenges, Dai maintains confidence in Moderna’s ability to achieve cash break-even by 2028, supported by potential R&D cuts and the company’s financial guidance. These elements collectively underpin Dai’s decision to reiterate a Buy rating, albeit with a reduced price target.