Moderna (MRNA – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Alexandria Hammond from Wolfe Research maintained a Sell rating on the stock and has a $25.00 price target.
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Alexandria Hammond has given her Sell rating due to a combination of factors impacting Moderna’s financial outlook and strategic position. The company is facing significant challenges with its Norovirus trial being placed on hold by the FDA due to safety concerns, specifically a case of Guillain-Barré Syndrome. This regulatory hurdle adds to the uncertainty surrounding the company’s future revenue streams, as management has reiterated a significantly reduced revenue guidance for 2025, with little optimism for upside before 2027.
Additionally, despite some positive developments expected in their vaccine pipeline, including potential approvals for a next-generation COVID-19 vaccine and a flu/COVID-19 combination vaccine, the looming Roivant litigation over Moderna’s LNP technology poses a substantial risk. The litigation could have significant financial implications depending on its outcome, particularly as a jury trial is anticipated later in the year. Combined with broader cost management challenges, these factors have led Hammond to deem the risk/reward profile of Moderna’s stock unattractive, resulting in a lowered price target of $25.
In another report released on February 11, Bank of America Securities also reiterated a Sell rating on the stock with a $34.00 price target.