Moderna, the renowned Covid-19 vaccine maker, faced a challenging year in 2020 with a significant decline in vaccine sales. However, Oppenheimer analysts shed light on a more promising future for Moderna.
Led by Hartaj Singh, the analysts upgraded Moderna to Outperform from Perform and set a price target of $142 in their recent report.
In premarket trading, the company’s shares tipped 0.5% lower to $99, while its competitor, Pfizer, saw a modest increase of 0.1% to $28.82.
Reasons for Optimism
The Oppenheimer analysts provided several reasons for the upgrade. They highlighted increased visibility on Covid-19 vaccine sales and a well-defined framework for managing expenses. Moreover, they expressed optimism for Moderna’s future prospects, anticipating the company to become a five-product commercial entity by 2026, driven by catalysts in 2024 and 2025. These catalysts include advancements beyond Covid-19, particularly in the development of the company’s Respiratory Syncytial Virus (RSV) and influenza vaccines.
A Renewed Hope for Investors
This upgrade brings welcome news to investors who witnessed a staggering 45% decline in Moderna stock value over the past year due to dwindling interest in Covid-19 vaccine sales. Oppenheimer analysts acknowledge that sales may hit a low point in 2024 due to a combination of vaccine fatigue and complexities within the US commercial market. However, they foresee a resurgence in sales beyond 2025 as education and awareness surrounding Covid-19 continue to grow.
This positive outlook resonates with a larger narrative on Wall Street. The average analyst price target for Moderna is $126.72, while the current trading price stands at approximately $100, according to FactSet data.