Moderna, that has seen its stock increase 250% as it helps vaccinate the world against the coronavirus in the past year, it will officially enter the S&P 500 on July 21.
The news sent shares up more than 8% to $282 in Friday’s session as the shares are likely to be bought by fund managers benchmarking the S&P 500. But Jefferies analyst Michael Yee tells Yahoo Finance Live he thinks the run in Moderna stock (MRNA) is far from done.
“Moderna is the Tesla of biotech,” Yee says, pointing to Moderna’s impressive pipeline of product innovation.
Yee sees at least two medium-term catalysts for Moderna’s stock price. First, there is the potential for COVID-19 booster shots from Moderna, which can be discussed by management when the company reports its earnings on August 5.
“We see the 2021 outlook increase to $21 billion from $19 billion and expect positive commentary on boosters in development (potentially Delta next) and preparation for 2022 orders,” Yee wrote in a research note to customers. Yee believes the government stockpiling of COVID-19 booster shots would be a tailwind for players like Moderna and Pfizer.
Meanwhile, Yee thinks investors shouldn’t stay the night Moderna’s Flu Vaccine Efforts Flu.
“While the boosting [booster shot] As the debate continues for the rest of the year, we think the market will be looking at Phase I flu data by the end of the year. We think COVID infections are likely to start increasing again in winter as some protection wears off [million]-8 million as of March, but they will likely be mild. But Moderna is testing a multivalent flu vaccine and has antibody titer data by the end of the year. We think this data will look very strong (very high titers) – supporting large phase II/III in 2022/2023 for high PoS,” Yee said.
The analyst has a price target of $250 on Moderna’s stock, but an upward target of $325.
“Our $325 upward scenario takes into account high chances of success for each of the key areas and indications (versus the base case),” explains Yee. “In this scenario, we assume that the MRNA clinical candidates deliver better-than-expected results in their ongoing programs, that the vaccine prophylactic areas are significantly less at risk towards 90% PoS, and the cancer programs show positive early data, opening a new area. of R&D opportunities. We also note the potential for inventory build-up during the race for Vaccine 2.0 against emerging COVID-19 variants.
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