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Headquartered in Cambridge, Massachusetts, Moderna, Inc. (MRNA) is a biotechnology company specializing in messenger RNA (mRNA) technology to develop transformative vaccines and therapeutics. With a market cap of $18 billion, Moderna is at the forefront of innovative healthcare solutions, pioneering treatments for infectious diseases, cancers, and rare conditions.
Shares of Moderna have significantly underperformed the broader market over the past year. The stock has declined 39% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 35.9%. In 2024 alone, MRNA stock is down 57%, while the SPX is up 25.8% on a YTD basis.
Narrowing the focus, MRNA’s underperformance is also apparent compared to the SPDR S&P Biotech ETF (XBI). The exchange-traded fund has gained about 54.6% over the past 52 weeks. Moreover, the ETF’s 16% gains on a YTD basis compare to the stock’s losses over the same time frame.
Once a COVID-19 vaccine trailblazer, Moderna’s shares have taken a hit over the past two years as vaccine demand waned. The company faced pressure from royalties, inventory write-downs, and a slower-than-expected RSV vaccine launch.
On Nov. 7, MRNA closed down more than 2% after the company reported its Q3 earnings results. However, its EPS of $0.03 beat the consensus estimates of a loss per share of $1.89. The company’s revenue of $1.86 billion surpassed Wall Street expectations of $1.26 billion.
For the current fiscal year, ending in December, analysts expect MRNA’s loss per share to narrow 23.8% to $9.39 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 23 analysts covering MRNA stock, the consensus rating is a “Hold” - a downgrade from the “Moderate Buy” rating just two months ago. The current rating is based on six “Strong Buy” ratings, 15 “Holds,” and two “Strong Sells.”
On Nov. 8, Evercore ISI analyst Cory Kasimov maintained a ‘Hold’ rating on MRNA, with a price target of $60, which indicates a 40.4% upside from the current levels.
The mean price target of $90.95 represents a 112.7% premium to MRNA’s current price levels. The Street-high price target of $212 suggests an impressive upside potential of 395.9%.
On the date of publication, Rashmi Kumari 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.
