Moderna downgraded at Jefferies on ‘elevated expectations’

 

• Despite favorable views from FDA scientists on its COVID-19 vaccine efficacy, the analysts at Jefferies have downgraded Moderna (NASDAQ:MRNA) citing ‘elevated expectations in the wake of a 653% rally this year.’
• After falling -5.1% in value yesterday, the stock is trading -3.8% in pre-market trading ahead of a possible emergency authorization later this week for the company’s mRNA-based vaccine against COVID-19.
• Noting that the ‘company’s pipeline has been de-risked by success for its Covid-19 vaccine’ and projecting Covid sales to reach $10B this year, the analyst Michael Yee writes ‘stock is among the industry’s best this year ‘compared to 54% gain for the SPDR S&P Biotech ETF (NYSEARCA:XBI).’
• Highlighting ‘2021 guidance parameters and Phase 3 data from competitors like AZN, JNJ, and NVAX in the start of next year’ as key events, Yee, however, argues ‘the investor focus will be on 2021 execution.’
• The recommendation is cut to ‘Hold’ from ‘Buy’ with a price target at $150, equal to that set by Morgan Stanley which has also downgraded the stock to equal-weight from overweight.
• https://seekingalpha.com/news/3644837-moderna-downgraded-jefferies-on-elevated-expectations