Moderna MRNA shares jumped more than 9% in early trading Friday, reaching a fresh 52-week high as the biotechnology company returned to the Nasdaq-100 index.
Moderna hit a 52-week high of $216.95. It lost some of the gains and was trading at $208.69, up 5.9% at the time of writing.
The broader market was also higher, with all three major US stock indexes gaining as Treasury yields cooled and oil prices declined.
Nasdaq-100 inclusion adds fuel
Moderna’s return to the Nasdaq-100 is proving to be the major catalyst for the stock.
The company had previously been part of the index before being removed following a decline in its shares after the pandemic. Its shares had fallen to as low as $22 before scripting a dramatic comeback.
Its re-entry comes after a sharp recovery in its market performance, with a rise of over 670% in one year. It has been among the most outstanding performers in the market this year.
The biotechnology company is replacing Warner Bros. Discovery in the technology-heavy index.
The inclusion has created additional demand for Moderna shares as index funds and exchange-traded funds that track the Nasdaq-100 adjust their portfolios to reflect the change.
The index is tracked by more than 200 investment products with over $800 billion in assets, broadening the pool of investors exposed to Moderna, who now have to include the biotech company in their funds.
Cancer therapy pipeline remains key
Investors are also looking ahead to Moderna’s oncology pipeline, particularly the upcoming Phase 3 data for intismeran autogene, an individualized neoantigen therapy developed in collaboration with Merck.
The data are scheduled to be presented on October 24. The positive Phase 3 results have been described as a historic milestone for commercialized individualized mRNA cancer therapy, attracting attention from investors and Wall Street.
Moderna has also announced Juan Andres as its new chief operating officer as the company looks toward potential expansion in oncology and a broader portfolio of commercial vaccines.
These developments are adding to investor interest beyond the immediate impact of the Nasdaq-100 inclusion.
Stock price trading above analysts’ target price
However, the stock’s substantial rise also raises questions about how much of the anticipated progress has already been reflected in its valuation.
Investors will be watching whether developments in Moderna’s pipeline can translate into sustained financial gains over the longer term.
Earlier this month, Morgan Stanley raised its price target on Moderna to $95 from $89 while maintaining an Equal-Weight rating.
Citigroup analyst Geoff Meacham, meanwhile, downgraded the stock to Sell from Neutral, although he raised his price target to $80 from $60.
Both price targets remain well below Moderna’s current trading level of just above $200.
These numbers indicate that analysts are still taking a cautious view of the stock even as the bull run refuses to end.
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