Bernstein Reiterates Market Perform Rating on Moderna (MRNA)

Bernstein SocGen Group analyst Courtney Breen reiterated a Market Perform rating and $25.00 price target on Moderna (NASDAQ: MRNA).

The analyst commented: "Productive cost-cutting & finding the bottom for COVID market share; MRNA reported 3Q earnings Thursday (see our quick take here); and it was a strong performance in terms of cost-cutting. It’s critical for MRNA to lower their cash costs and breakeven in the face of declining COVID sales to avoid the need for capital infusion. This note aims to detail what we learned on the earnings call, supplemented with insights from our call-back with IR & updates to our model.

Moderna demonstrated meaningful progress in cost reductions this quarter, with COGS and R&D spend coming notably below consensus. However, we still see the path to profitability as challenging. We updated our model to reflect lower future expectations for COVID and RSV - it’s good to find the bottom for market share (~40%), albeit we expect vaccination rate to continue to trail off. EPS for the full year improves to -8.30, from -9.88."

For an analyst ratings summary and ratings history on Moderna click here. For more ratings news on Moderna click here.

Shares of Moderna closed at $24.76 yesterday.

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