On Monday, Evercore ISI commenced coverage on shares of Moderna (NASDAQ:MRNA), trading on NASDAQ:MRNA, with an "In Line" rating and a price target of $120. The move reflects the firm's perspective on the biotechnology company's potential in the vaccine market and its extensive development pipeline.
The coverage initiation is based on the potential success of Moderna's combination COVID-19 and flu vaccine, which could spearhead the company's respiratory franchise. The firm expressed a reserved outlook on the standalone prospects for both the COVID-19 and flu vaccines.
Evercore ISI also acknowledged Moderna's mRNA-1345 as a viable candidate in the fight against Respiratory Syncytial Virus (RSV), although it does not expect it to become the market leader. In contrast, the firm showed optimism for Moderna's Phase 3 Cytomegalovirus (CMV) vaccine candidate, mRNA-1647, citing the significant unmet medical need and lack of competition in that area.
Moderna's extensive pipeline, which includes 45 programs in various stages of development, was highlighted as a key element of the company's value proposition. The firm indicated particular interest in Moderna's endeavors in oncology and rare diseases, suggesting these areas contribute to the company's potential upside.
The price target of $120 reflects Evercore ISI's assessment of these factors, as Moderna continues to navigate the competitive landscape of vaccine development and pharmaceutical innovation.
InvestingPro Insights
As Moderna (NASDAQ:MRNA) garners attention with Evercore ISI's coverage initiation, InvestingPro data and tips offer additional insights into the company's financial health and market performance. Moderna's management has demonstrated confidence through aggressive share buybacks, and the company's balance sheet shows a favorable position with more cash than debt. Furthermore, the company's liquid assets surpass its short-term obligations, indicating a strong liquidity position.
InvestingPro data highlights a significant market capitalization of $48.16 billion, despite a negative P/E ratio of -8.01, reflecting challenges in profitability. The company has experienced a notable decline in revenue over the last twelve months as of Q1 2024, with a decrease of 65.78%. However, Moderna's stock price has shown resilience with a substantial uptick over the last six months, boasting a 67.08% return.
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