Shares of coronavirus vaccine maker Moderna Inc.
were rallying in premarket trading on Monday.
What Happened: Jefferies analyst Michael Yee upgraded shares of Moderna from Neutral to Buy and raised the price target from $170 to $275, suggesting 42% upside from current levels.
The analyst sees the COVID-19 vaccine as no longer the thesis on the stock, with the consensus estimate for vaccine sales coming down from $20 billion in 2021-22 to $6 billion to $8 billion in 2023-24.
Moderna stock will likely go up in 2023, the analyst said, premising his deduction on the following factors:
- New polycythemia vera cancer is the new story after last week’s positive Phase 2 data for its personalized cancer vaccine in skin cancer patients.
- The Phase 3 respiratory syncytial vaccine data will likely be positive.
- This will set the stage for combo vaccines with two to three antigens, which are all in Phase 2 stage and for which data readouts are expected in 2023.
- Orphan disease franchise data is due in 2023.
“We see stock rebounding back up in 2023, a return of pipeline opportunities and a "story stock" as generalist and HC interest revisits the stock,” the analyst said.
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