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Despite the reduction in global Covid-19 cases and the expected gradual return to normal, fear of mutant strains remains.
Jefferies analyst Michael Yee counts the specter of new variants as one of the main reasons Moderna (RNAm) is well placed to capitalize.
“We strongly believe that mRNA is trading on visibility into 2022+, where ‘2.0’ variant vaccines are at the center because the street fears the variants will disrupt recovery, and as long as there are variants, mRNA can benefit because it can quickly adapt and do 2.0 and 3.0, ”the analyst said.
Since the emergence of the South African variant, for which Moderna’s m-RNA-1273 vaccine from the Covid-19 vaccine has been found to be less effective, biotechnology has started testing the new variant; Yee expects “positive” data this summer. The analyst predicts a robust global effort to tackle any new strain, and notes that some countries have already started placing orders for vaccine variants.
New variant or not, Yee believes the demand for the Moderna vaccine is greater than originally anticipated. When the company releases its fourth quarter results this week (February 25), Yee expects the company’s outlook to confirm it.
“In our opinion, MRNA has clearly emerged as a major player, we expect the forecast for 2021 to show that, including sales potential of $ 15 billion to $ 16 billion (we are increasing to $ 15 billion) and much more than what investors thought six months ago, ”Yee said. “The mRNA manufacturing capacity appears to be accelerating well as deliveries to the United States are delayed by 1 to 2 months and mRNA is close to meeting its € 300 million commitment to states. -United by the end of July. ”
Conversely, according to the analyst, some “valuation sensitive investors” may be “frustrated” by Moderna’s $ 63 billion market capitalization. This undoubtedly means that expectations are high and that the high multiples and massive appreciation of stocks are cited as the reasons why Yee maintains a Hold rating on stocks for now.
That said, Yee raised his price target from $ 150 to $ 180, which suggests an increase of about 13% from current levels. (To look at Yee’s record, Click here)
The rest of the street is cautiously tipping on the bullish side. ARNM’s moderate buying consensus score is based on 6 buy scores, 4 take and 2 sell. There is a possible 8% increase, if the goal of $ 172.09 is reached in the coming year. (See MRNA stock market analysis on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the analyst presented. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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