Shares of Moderna Inc (NASDAQ: MRNA) rose in early trading on Monday, just days after the pharma company submitted an application to the Food and Drug Administration (FDA) for the authorization of an updated vaccine.
The stock’s current valuation reflects uncertainty around Covid vaccine revenues, according t Eliana Merle upgraded the rating for Moderna from Neutral to Buy, while reducing the price target from $221 to $191.
The pullback in the stock suggests that the potential for mRNA vaccines in diseases beyond Covid is “underappreciated,” Merle said.
Modern’a CMV vaccine could be “a major potential upside driver” over the next two years, she explained.
“We think latent viruses could be a large opp’y for mRNA and success in CMV would have reads to other programs,” Merle added. “In the respiratory franchise, filing for RSV is guided for 1H23, with a potential launch in ’24, which would expand MRNA’s revenues beyond COVID.”
MRNA Price Action: Shares of Moderna had risen by 1.47% to $120.24 at the time of publishing Monday.
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