Wolfe Research starts Moderna at Underperform, sees limited upside opportunity

Wolfe Research analyst Alexandria Hammond initiated coverage of Moderna (MRNA) with an Underperform rating and $40 price target Moderna may be the premier mRNA company with 43 developmental programs, but its P&L concerns, anchored by a lack of top-line growth and industry leading OpEx spend, are keeping the firm on the sidelines, the analyst tells investors in a research note. There isn’t too much downside risk, but there’s also limited upside opportunity given the overhangs for all of Moderna’s near-term growth drivers, including its Cytomegalovirus vaccine, Respiratory syncytial virus vaccine and combination of COVID-19 and flu vaccine, Wolfe adds.