Moderna (MRNA) fell 12.8% to $82.68 on Monday after J.P. Morgan analyst Cory Kasimov downgraded the stock to neutral from buy citing the company’s high valuation. However, he increased the price target to $89 from $60.
Moderna’s solid bull-run on expectations of the development of a potential COVID-19 vaccine has driven its stock up about 323% this year. It is up over 488% year-on-year.
The analyst stated that he remains bullish on the long-term prospects of the company and considers it to be a frontrunner to bring out a COVID-19 vaccine. However, given the significant growth in its stock and uncertainty surrounding the COVID-19 vaccine, including its price, duration, and competition, its valuation seems unjustified.
On July 15, Oppenheimer analyst Hartaj Singh reiterated his buy rating on the stock with a price target of $108. Overall MRNA shows a Strong Buy Street consensus, with 13 analysts suggesting a buy and 3 analysts recommending a hold. The average analyst price target stands at $93.79, implying a 13.4% upside potential. (See Moderna’s stock analysis on TipRanks).
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