By Senad Karaahmetovic
SVB Securities upgraded shares of Moderna (NASDAQ:MRNA) to Market Perform from Underperform with a price target of $101 from $74 per share.
The analysts there upgraded MRNA stock after hearing recent comments from Pfizer (NYSE:PFE) about higher-than-expected pricing for its COVID-19 vaccine. If this is the case for Moderna as well, SVB sees a much better position for the company to meet its 2023 revenue guidance.
“Without a guidance cut, the bear case lacks a clear driving catalyst, in our view. Bulls will point to PCV data in 4Q22, on the heels of external validation by partner MRK, while bears question commercial viability of the flu program, for which dispositive data will not be available until late-2023,” SVB wrote in a client note.
The raised price target reflects increased estimates that mirror higher COVID pricing.
“As this represents inadequate downside from MRNA’s current level (~$118) near its 52-week low to justify an Underperform rating, we step to the sidelines and wait for a more attractive entry point on either the long or short side,” the analysts concluded.
Moderna shares are trading over 4% higher today.