Moderna upgraded to hold at Deutsche Bank on current valuation
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Following a stock drop of ~39% over the last month alone, Deutsche Bank has upgraded shares of Moderna (MRNA
+8.0%) citing a more reasonable valuation.
The firm has a $175 price target (~15% upside based on yesterday's close).
Analyst Emmanuel Papadakis writes that when he initiated the stock at sell in October, it was based on Moderna's lofty valuation at the time, along with the "implied realism of the pipeline opportunity" and "concerns over the ultimate size and durability of the COVID booster market."
Since then, he notes, Moderna has halved in value.
Papadakis adds that there is increasing sentiment that the Omicron variant is hastening the transition from COVID to an endemic from a pandemic stage.
He says that the company could be buoyed by a potential annual COVID/flu shot.
In H1, Moderna should be releasing phase 1 data on its next-generation COVID vaccine, mRNA-1283. And some point this year, mRNA-1073, a combination of its current COVID vaccine and mRNA-1010, its quadrivalent flu vaccine, should move into phase 1, according to Papadakis.
Read why Seeking Alpha contributor Star Investments views Moderna as a buy at its current level.