Moderna Stock Valuation Seen as Unsustainable After 202% Surge

Moderna's stock has surged by 202% since August 18th after positive news about its experimental cancer vaccine, intismeran. The biotech company is co-developing this treatment with Merck.

Citigroup analysts recently downgraded the stock to Sell, citing unrealistic sales expectations for the treatment.

Seeking Alpha analysts Stephen Ayers and The Alpha Analyst agree that Moderna's valuation has become unsustainable.

Ayers argues that even if the vaccine is approved for high-risk melanoma, peak annual sales would likely be around $5 billion, but its valuation has risen over $50 billion since the news drop.