Moderna Stock Volatility Intensifies as Analyst Warns of Unjustifiable Valuation
Moderna Inc's stock (MRNA) is experiencing volatility after a Citi analyst downgraded its rating to Sell. The company's shares have been trading near recent highs, reaching a fresh 52-week high of $208.90 on Tuesday.
This significant run began in mid-August when positive late-stage trial data for the company's experimental cancer vaccine, intismeran autogene, paired with Merck's Keytruda, sent shares soaring by 223%. However, Citi analyst Geoff Meacham cut his rating and raised his price target to $80 from $60, which is still roughly 60% under Tuesday's closing price.
Meacham's case against Moderna's valuation rests on the company's market value, which he believes is unjustifiable. He pointed out that despite being close to Regeneron's market value, Moderna's expected sales and profits trail behind. Meacham also estimated that even in a best-case scenario where every trial succeeds, the stock would only be worth about $100 a share.
Not everyone agrees with Meacham's view, as 15 of the 24 analysts covering Moderna still rate it a buy. The company has also made recent business updates, including the reappointment of Juan Andres as Chief Operating Officer and the expansion of its infectious disease vaccine portfolio to five approved products.
Despite this week's turbulence, the stock remains near its highest point in roughly three years, indicating that most of the summer's massive rally is still intact.