Moderna draws cautious views on Wall Street despite massive quarterly beat
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Moderna (NASDAQ:MRNA) has extended the sharp premarket gains to trade higher in the afternoon hours after the vaccine maker posted a strong revenue beat with its Q1 2022 financials. However, the companyâs decision to reiterate the sales outlook for the vaccine, branded as Spikevax, has triggered cautious remarks on Wall Street.
Morgan Stanley analysts led by Matthew Harrison have trimmed the price target to $199 from $277 per share, indicating a 28% cut as the firm lowered the earnings estimates for the Cambridge, Massachusetts-based biotech.
Noting that the value of 2022 advance purchase agreements for the vaccine remained flat, the team highlighted Omicron-specific booster data and uptake of booster vaccines as key near-term revenue-related catalysts for the company. Morgan Stanley reiterated the Equal Weight rating on the stock.
âModerna will have very soon four vaccine candidates in Phase 3: an Omicron-containing bivalent COVID booster, a flu booster, an RSV booster and the CMV primary series vaccine,â the company CEO Stephane Bancel said at the earnings call.
Moderna (MRNA) expects one-month study data from the bivalent booster shot mRNA-1273.214 in June 2022 and plans to launch it in the fall of 2022 to lead the fall-winter booster vaccine drive in the Northern Hemisphere.
Commenting on financials, Lee Brown at research firm Third Bridge noted that the company reported an extraordinarily solid first quarter. However, the COVID-19 appears to be on the wane in many countries, making the durability of future vaccine sales uncertain.
"Of course, the focus is less on 2022," Brown said, "and remains on Modernaâs future, when revenue is expected to plummet."
Meanwhile, Cowen reaffirmed the Market Perform rating on the stock and lowered the price target to $165 from $200 per share.
Moderna (MRNA) currently has a Buy rating and an average price target of $232.12 on Wall Street.