Moderna downgraded at SVB to underperform on end of COVID pandemic revenue boom
hapabapa


SVB Securities has downgraded Moderna (NASDAQ:MRNA) to underperform from market perform as the mRNA vaccine maker's Q4 2022 results and 2023 outlook indicate "the pandemic revenue boom comes to an end."
The firm cut its price target to $93 from $111, a Street low (37% downside based on Thursday's close).

Analyst Mani Foroohar said that a boost in the cost of goods sold and operating expenses "paint a picture of margin erosion unseen in the sector since the collapse of the [hepatitis C vaccine] market."
He noted that Moderna could face additional downside risk from paying royalties to Arbutus Biopharma (ABUS) and Alnylam Pharmaceuticals (ALNY).
"Collectively, these changes point to an extended period of underperformance as the operating leverage that made MRNA one of the greatest pandemic beneficiaries reverses," Foroohar wrote.
Check out Seeking Alpha contributor's Edmund Ingham's assessment of the company's recent earnings.