RBC Capital Downgrades Moderna Stock to Neutral Amid Vaccine Market Challenges
RBC Capital has adjusted its stance on Moderna shares, moving from a bullish 'Outperform' rating to a neutral 'Sector Perform'. The biotechnology company's price target has been reduced to $90 from $125, reflecting concerns over near-term challenges in the vaccine market, particularly with its RSV and COVID-19 vaccines.
Moderna recently faced obstacles in the RSV vaccine market, putting it at a competitive disadvantage against Pfizer and GlaxoSmithKline. Additionally, the company is unlikely to win the EU tender for COVID-19 vaccine doses, facing increased competition in the US.
Despite potential in other applications, Moderna's immediate financial outlook is not as strong as previously expected. RBC Capital anticipates revenue to plateau around $3-4 billion, with concerns about the company's operating expenses.
Investors can use InvestingPro data to further evaluate Moderna's financial health, considering factors like its P/E ratio, revenue decline, and cash balance. The stock's RSI suggests it's oversold, but caution is advised as analysts have revised earnings downwards.
The InvestingPro Fair Value estimate of $93.13 offers a conservative outlook with a modest upside potential. As the market assesses Moderna's position, these insights can help investors make informed decisions about their portfolios.