• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Investing

RBC downgrades Moderna and cuts price target by 28%: Should you exit?

by August 5, 2024
written by August 5, 2024

The decision by RBC Capital Markets to downgrade Moderna Inc. (NASDAQ: MRNA) from “Outperform” to “Sector Perform” has sent the stock tumbling by over 6% in pre-market trading on Monday.

This downgrade reflects growing concerns about Moderna’s near-term prospects amid an increasingly challenging market for its flagship COVID-19 and RSV vaccines.

Alongside the downgrade, RBC slashed its price target for the stock from $125 to $90, signifying a cautious stance toward the company’s future.

This revised target still suggests a modest upside from its last closing price, but it underlines the uncertain outlook that Moderna faces after a tumultuous Q2 earnings report.

Q2 earnings in detail

The company’s Q2 FY 2024 earnings, released on August 1, exceeded Wall Street forecasts with a revenue of $241 million, beating expectations by $106.13 million.

Despite this beat, Moderna reported a staggering 73% year-over-year decline in net product sales, primarily driven by the decreased demand for its COVID-19 vaccine, Spikevax.

The biotech firm now projects its annual product sales to be between $3 billion and $3.5 billion, down from an earlier forecast of around $4 billion.

The lowered guidance reflects multiple headwinds, including reduced sales in the European Union and intensifying competition in the U.S. respiratory vaccine market.

Moderna’s peers, such as Pfizer and GSK, have bolstered their positions, leaving Moderna to navigate a landscape fraught with rivalry.

Moderna’s CEO, Stéphane Bancel, has emphasized the company’s commitment to executing its strategy for the upcoming COVID season and the U.S. launch of its RSV vaccine. However, the downgrade by RBC suggests that these efforts might not be enough to offset the prevailing challenges.

Headwinds faced by Moderna

Fundamentally, Moderna faces a complex array of issues. The company’s balance sheet, although strong with a cash reserve of $10.8 billion as of June 30, 2024, reveals vulnerabilities in sustaining profitability amidst declining sales.

The revised guidance has shaken investor confidence, contributing to a sharp decline in Moderna’s stock price, which plummeted from $120 to $86 in just two days following the earnings announcement.

This volatility highlights the market’s apprehension about Moderna’s dependency on its COVID-19 franchise, a concern exacerbated by the broader shift towards an endemic management of the virus.

From a growth perspective, Moderna is at a crossroads. The company is actively expanding its pipeline beyond COVID-19, with notable progress in its respiratory syncytial virus (RSV) and influenza vaccine programs.

The FDA approval of Moderna’s RSV vaccine, mRESVIA, marks a significant milestone, yet the market’s reaction indicates skepticism about its immediate impact on revenue growth.

Moderna’s strategic focus on leveraging its mRNA technology platform to address broader public health challenges remains a pivotal part of its long-term growth narrative.

Despite these growth initiatives, the near-term outlook remains cloudy. Moderna’s aggressive R&D expenditure, projected at approximately $4.5 billion for 2024, underscores its commitment to innovation but also reflects the high stakes involved in developing new therapeutics.

The biotech firm has made strides in oncology with its mRNA-based Individualized Neoantigen Therapy, yet these advancements are not expected to contribute to revenue in the short term.

As Moderna charts its course through this turbulent landscape, the company’s performance will be closely scrutinized.

The next few quarters will be decisive in determining whether Moderna can stabilize its revenue base and capitalize on its pipeline’s potential.

Investors and analysts alike will be watching for signs of recovery and sustained growth in the company’s financial metrics.

With this fundamental overview in mind, it’s time to turn our attention to the technical aspects of Moderna’s stock.

By analyzing key technical indicators and trends, we can gain valuable insights into market sentiment and anticipate how Moderna’s stock might perform in the coming months.

A bounce back on the cards?

Moderna’s stock has seen a substantial decline from its all-time high near 2022 made in late 2021. Although it has tried to bounce back and stabilize several times during this downtrend, it has failed to recapture previous swing highs.

MRNA chart by TradingView
The stock has lost 50% of its value from its previous swing high above $170.47 made in May this year and one-third of its value since the start of the month. Moreover, it is now trading close to its previous support level near $67.5. Hence, the chance for a pullback remains strong.

Therefore, bears looking to enter a fresh short position in the stock must wait for a bounce back to materialize or for the stock to fall below $67.5.

Investors and traders who have a favorable outlook on the company in the short to medium term can capitalize on this recent rapid decline by purchasing the stock below $80 with a stop loss at $67.2. If the momentum shifts even temporarily, the stock can again bounce back to levels above $100 soon.

The post RBC downgrades Moderna and cuts price target by 28%: Should you exit? appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Explained: What’s the reason for global stock sell-off and who’s to blame?
next post
Israel considers preemptive strike on Iran as tensions escalate: report

related articles

Asian markets open: Nikkei, Hang Seng fall on...

June 12, 2025

Aluminum and steel tariffs spark rise in secondary...

June 12, 2025

Airbus sees aviation boom ahead, global fleet to...

June 12, 2025

US-China trade talks and Washington’s decade-long effort to...

June 12, 2025

Europe markets open: Stoxx 600 dips as UK...

June 12, 2025

UK GDP falls by 0.3% in April as...

June 12, 2025

Gordon Brothers buys Poundland; pledges £80 mn for...

June 12, 2025

Air India plane crash: London-bound flight with 242...

June 12, 2025

Air India plane crash live update: Indian President...

June 12, 2025

Copper remains supported for now even as China...

June 12, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Dozens of former FBI agents rally around Kash Patel’s confirmation: ‘Lives have been shattered’

    January 29, 2025
  • Could Butler happen again? Former Secret Service agents weigh in on political violence in 2025

    July 12, 2025
  • Gun seller takes stand in Trump assassination attempt trial with key testimony about rifle purchase

    September 17, 2025
  • Israel cease-fire deal has critics worried over Biden, Obama officials looking to stymie incoming Trump admin

    November 29, 2024
  • ‘Can’t wait till the last minute’: NC congressman raises alarm on voter access in areas hard hit by Helene

    October 12, 2024

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 3

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 4

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (6,064)
  • Investing (634)
  • Stock (926)

Latest Posts

  • Biden calls for Supreme Court term limits, code of conduct, limits on presidential immunity

    July 29, 2024
  • Trump-backed bills on activist judges, non-citizen voting heading for House-wide votes

    April 8, 2025
  • Amazon extends Prime Day discounts to 4 days as retailers weigh tariffs and price increases

    July 9, 2025

Recent Posts

  • Secretary of State Rubio confirms becoming acting USAID chief

    February 3, 2025
  • With 17 days until voting starts, ‘election season’ kicks off sooner than you think

    August 20, 2024
  • Former Jill Biden staffer torches White House’s ‘bonehead’ attempt to transcribe Biden’s ‘garbage’ comment

    October 30, 2024

Editor’s Pick

  • Justice Department looking to wind down Trump criminal cases ahead of inauguration

    November 6, 2024
  • ‘Delusional’: Oversight Republicans slam ex-Biden aide for lashing out at Trump, GOP in autopen probe

    September 5, 2025
  • Increased sausage demand may be a red flag for the economy, Dallas Fed survey says

    August 27, 2024
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock