Moderna Stock Hits Record Highs Despite Analyst Skepticism

Moderna's shares skyrocketed 177% after promising results from its cancer-related mRNA clinical trials, but analysts remain skeptical about the stock's sustainability.

The rally came on the heels of a Phase 3 trial for Instimeran Autogene, an mRNA-based cancer vaccine co-developed with Merck. The top-line results showed meaningful improvements in recurrence-free survival and distant metastasis-free survival in patients with completely resected Stage IIB-IV melanoma.

However, analysts at Rothschild & Co. Redburn's Simon Baker and J.P. Morgan's Jessica Fye downgraded the stock to 'sell' due to uncertainty over subsequent trial data. They argue that the market has likely overreacted to the news.

Moderna has raised $2.6 billion in capital by issuing convertible debt, which could limit upside if shares continue to rise. The company's share dilution remains an issue, and investors may want to wait for the hype to simmer down before entering a long-term position.