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Monday, July 20, 2020

Moderna, on ‘vaccine day,’ cut at JPMorgan

Moderna Inc. (NASDAQ:MRNA) was on the receiving end of a downgrade following its outsized gains this year, up 576% in the past 52-weeks and 385% in 2020 alone, this time by JPMorgan analysts who just last week said they were “encouraged” by the recent data  which ultimately raises the odds for a successful outcome.
At the time, they stressed that the data was “far from a done deal.” Today, the market is largely expecting to see data from the Oxford/AstraZeneca (NYSE:AZN) trial, which an executive from the Lancet teased  just yesterday in a twitter post,Tomorrow. Vaccines. Just saying.”
The downgrade is “not a call” on the expectations for the drug, but due to valuation, even as the analysts remain bullish on MRNA’s long term outlook. But the co. is now “sporting” a $37 billion market cap following its Friday rally.
Shares are weaker pre-market, off about 4%.
Analysts led by Cory Kasimov write that there are a “significant” number of unknowns and find it difficult to “pull any additional levers” in their model to justify and fundamentally recommend the stock, despite the fact that momentum could drive the stock still higher, the analysts concluded.
Investors should note that Moderna has recently sold off at times when reports of increased insider sales emerge. 

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