Moderna, Inc. (MRNA), headquartered in Cambridge, Massachusetts, is a biotechnology company primarily focused on discovering and developing messenger RNA (mRNA) based therapies. Valued at $63.85 billion by market cap, the company developed one of the earliest COVID-19 vaccines. Its mRNA platform has helped develop therapeutics and vaccines for infectious, immuno-oncology, rare, cardiovascular, and autoimmune diseases.
Shares of this leading biotechnology company have marginally underperformed the broader market over the past year. MRNA has gained 26.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 28.9%. However, in 2024, MRNA stock is up 67.5%, significantly surpassing SPX’s 11.2% rise on a YTD basis.
Zooming in further, MRNA’s outperformance is apparent compared to the VanEck Biotech ETF (BBH). The exchange-traded fund has gained about 6.1% over the past year. Moreover, MRNA’s gains on a YTD basis outshine the ETF’s 1.7% returns over the same time frame.
MRNA shares jumped more than 7% on May 2 after the company reported its Q1 results. Its Q1 loss per share stood at $3.07, lower than the Street estimates of $3.58. The company’s revenue came in at $167 million, higher than analyst expectations of $124.70 million.
For the current fiscal year, ending in December, analysts expect MRNA’s loss per share to narrow 39.4% to $7.47 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 21 analysts covering MRNA stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, one “Moderate Buy,” 10 “Holds,” and two “Strong Sells.”
This configuration has been consistent over the past three months.
Recently, UBS analyst Eliana Merle maintained a “Buy” rating on MRNA stock and raised the price target from $143 to $151, implying a potential downside of 9.4% from current levels.
The mean price target of $136.15 represents an 18.3% downside from MRNA’s current price levels. However, the Street-high price target of $310 suggests an ambitious upside potential of 86.1%.
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.
