/Moderna%20Inc%20vaccine-by%20carmengabriela%20via%20iStock.jpg)
Moderna, Inc. (MRNA), headquartered in Cambridge, Massachusetts, is a biotechnology company primarily focused on discovering and developing messenger RNA (mRNA) based therapies. Valued at $33.18 billion by market cap, the company developed one of the earliest COVID-19 vaccines. Its mRNA platform has helped develop therapeutics and vaccines for infectious, immune-oncology, rare, cardiovascular, and autoimmune diseases.
Shares of this leading biotechnology company have underperformed the broader market considerably over the past year. MRNA has declined 21.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 18.5%. In 2024 alone, MRNA stock is down 12.9%, while the SPX is up 12.1% on a YTD basis.
Narrowing the focus, MRNA’s underperformance is also apparent compared to the S&P 500 Healthcare Sector SPDR (XLV). The exchange-traded fund has gained about 13% over the past year. Moreover, the ETF’s 10.6% gains on a YTD basis compare to the stock’s losses over the same time frame.
On Aug. 1, MRNA’s shares closed down more than 21% after the company reported its Q2 results. Its loss per share of $3.33 beat the consensus estimates of a loss per share of $3.47. The company’s revenue of $241 million surpassed Wall Street expectations of $124.90 million. MRNA cut its full-year net product sales forecast to $3 billion and $3.5 billion, down from the previous forecast of $4 billion, weaker than the consensus of $4.14 billion.
MRNA said it expected very low sales in 2024 from EU member states and it is seeing increased competitive pressures for its respiratory vaccines in the U.S.
For the current fiscal year, ending in December, analysts expect MRNA’s loss per share to narrow 36.6% to $7.82 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 22 analysts covering MRNA stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, one “Moderate Buy,” 11 “Holds,” and two “Strong Sells.”
This configuration has been consistent over the past three months.
Recently, Jefferies analyst Michael Yee maintained a “Buy” rating on MRNA stock but lowered the price target from $180 to $120, implying a potential upside of 38.6% from current levels.
The mean price target of $136.74 represents a 57.9% premium to MRNA’s current price levels. The Street-high price target of $310 suggests an ambitious upside potential of 258.1%.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
