June 19, 2024
Moderna (NASDAQ:MRNA) faces market decline due to COVID-19

While biotech stock Moderna (NASDAQ:MRNA) The entire drug portfolio is little more than just COVID-19 shots, they still make up a big part of the picture. In fact, it was prominent enough that news about that market size prompted investors to pack their bags and walk away, and at one point in Monday afternoon trading more than 9% of Moderna’s market capitalization was lost. Took more share with himself.

The term describing Moderna as a “torpedo” did not come from fellow biotech stock Pfizer (NYSE:PFE), which noted that only about 24% of eligible Americans were scheduled to get a booster shot for COVID-19. This results in a maximum market of approximately 82 million people, significantly lower than the initial figures. Some analysts, such as JPMorgan’s Chris Schott, are expecting sales of COVID-19 treatments to level off and become more predictable starting in 2024.

Although, in reality, as the COVID-19 sales celebration begins to fade — especially among potential customers, who at this point consider it little more than a trumped-up cold — there’s still reason to pay attention to Moderna. In fact, some analysts are predicting that the next five years, COVID-19 sales declines and all, may actually be better than the last five. It has recently made several major announcements about new products to come as Moderna continues to set its sights on everything from oncology to rare diseases and beyond. Of course, these will suffer the standard biotech curse of taking years, possibly decades, to generate returns. But it’s got a solid cash runway thanks to COVID-19 sales.

What is the target price of Moderna stock?

Meanwhile, analysts are also taking a similar long view. Currently, the analyst consensus rates Moderna stock a Moderate Buy, supported by seven Buy ratings, six Hold, and one Sell. Additionally, Moderna stock offers investors a 59.67% upside potential due to its average price target of $166.25 per share.


Source: www.tipranks.com

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