Breaking News: Jefferies Slashes Moderna's Price Target to $120 Amid Revenue Forecast Cut - What Does This Mean for Investors?
On Thursday, Jefferies, a global financial services company, revised its price target for Moderna (NASDAQ: MRNA) shares from $180.00 to $120.00, still maintaining a Buy rating. This adjustment comes after Moderna announced a reduction in its 2024 revenue forecast by $500 million to $1 billion due to lower Covid-19 vaccine pricing and deferrals in the Advanced Purchase Agreements (APA).
Investors are concerned about Moderna's financial performance, which includes significant losses and negative free cash flow. Jefferies highlighted the challenges the company is facing, projecting a decrease in cash reserves from $9 billion in 2024 to $6 billion by the end of 2025.
Analysts are questioning Moderna's financial management credibility, urging the company to implement cost reductions swiftly. Despite the revenue forecast cut, Moderna anticipates a return to sales growth in 2025.
Recent developments include a $176 million grant from the U.S. government for mRNA-based vaccines targeting pandemic influenza strains. Analyst firms like Jefferies, Argus, and TD Cowen have updated their price targets and ratings on Moderna's shares.
InvestingPro Insights: Moderna's management has been repurchasing shares, indicating confidence in the company's intrinsic value. The company holds a favorable cash-to-debt ratio, but its P/E ratio stands at -7.71, highlighting the lack of profitability.
In conclusion, Moderna's revised guidance and price target cut by Jefferies raise concerns about the company's financial health. Investors should closely monitor future developments and consider the insights provided by InvestingPro for a better understanding of Moderna's market performance.