Key Takeaways:
Argus Research upgraded Moderna to buy from hold with a $180 price target, the fifth firm to raise its rating this week.
"The stock trades more than 70 percent below its all-time high and has lagged its benchmark for five years, but the tide is turning," Argus analyst Jasper Hellweg said.
The upgrade follows positive Phase 3 data for the personalized mRNA cancer vaccine intismeran, developed with Merck, which cut recurrence by about 49 percent in patients with surgically removed high-risk melanoma. Argus' target implies 26.08 percent upside from Friday's close of $142.77. Shares fell 4.6 percent on Friday to $137.32, with 6.2 million shares changing hands.
Moderna has climbed from a 12-month low of $22.28 to a high of $176.66, yet remains more than 70 percent below its record. Wall Street stays cautious, with five buy, 16 hold and two sell ratings, according to Bloomberg data, and an average price target of $96.47, per FactSet.
The Cambridge, Massachusetts-based company reported a second-quarter loss of $1.97 a share on revenue of $145 million, beating consensus estimates of a $2.03 loss and $102.93 million. Revenue rose 2.1 percent from a year earlier.
Other firms have also lifted targets. UBS raised its price objective to $150 from $50, Goldman Sachs to $120 from $67, and Barclays to $125 from $48, all with neutral or equal-weight ratings. Citigroup moved its target to $60 from $41.
The upgrade comes as Moderna prices $2.6 billion of zero-interest convertible notes due 2032, upsized from $2.0 billion, with an initial conversion price near $210.58. The U.S. Food and Drug Administration also approved the company's updated 2026-2027 Spikevax and mNEXSPIKE COVID-19 vaccines targeting the XFG subvariant.
The string of upgrades suggests improving sentiment, but a broader re-rating depends on confirmatory clinical and regulatory milestones for the oncology pipeline. Investors will watch for further Phase 3 readouts and the next earnings report for updated guidance on the cancer vaccine program.
This article is for informational purposes only and does not constitute investment advice.
