Moderna (NASDAQ:MRNA) is gaining serious momentum after the company announced it will join the S&P 500 index. This means Moderna will join many index tracking and managed funds hence increasing the demand for MRNA stock. However, this is not the only catalyst as Jeffries Financial analyst Michael Yee set the companies price target to a new street high of $250. In addition, Dr. Marco Cavaleri, the European Medicines Agency (EMA) stated that a committee would likely finalize a decision on recommending authorization for Moderna’s COVID-19 vaccine in children by the end of next week. With plenty to discuss, this article will breakdown everything investors need to know.
What is Wallstreet saying about Moderna stock (NASDAQ:MRNA)?
Moderna has been one of the strongest performing stocks in 2021, gaining 201% year to date. The general sentiment across the board of 17 Wallstreet analysts is bullish with majority Buy ratings. However, MRNA’s sharp price action has outperformed analysts price targets with the average target staggering at $168.69.
Jefferies Financial Group sets street high target
Senior research analyst Michael Yee recently boosted Moderna’s 12 month price target to $250 a share. The target is currently the “street high” amongst Wallstreet analysts. Michael Yee noted “We see 2021 guidance increasing to $21 billion from $19 billion and expect positive commentary around boosters in development (potentially Delta next) and preparing for 2022 orders”. Furthermore, the senior analysts dubbed Moderna the “Tesla of Biotechs”.
Argus boosts price target
Analysts at Argus boosted the firms price target on Moderna stock to $230 a share. At the time of coverage, the stock was trading at $212 a share. The boosted target is a result of Moderna’s efforts to study potential COVID-19 vaccine boosters. Furthermore, the COVID-19 boosters will aim to solve logistic issues regarding the vaccine and target newer strains of the virus.
Revenue outlook for Moderna
Firstly, Moderna’s success in bringing its COVID-19 vaccine to the global market has fuelled immense revenue growth over the past 12 months. In the first quarter of this year, Moderna generated $1.9 billion in revenue. The strong revenue performance represents a YOY increase of over 23,000%. However, this exponential growth is expected to continue throughout 2021/22.
Across the board of 17 Wallstreet analysts, the average revenue forecast for 2021 sits at $18.32 Billion. As discussed previously, Jeffries Financial holds the highest revenue forecast at $21 Billion for the fiscal year. Looking ahead, analysts expect revenue to plateau in 2022 with an average forecast suggesting MRNA to generate $15.35 Billion.
The key drivers of this revenue growth includes the companies Advanced Purchase Agreements (APA’S) that include a pipeline of sales worth $19.2 Billion. In addition, the delivery rate of the Moderna vaccine is driving growth with 200-250 Million doses expected to be delivered in Q2. The Q2 earnings will be held on August 5th. The Q2 earnings will provide investors insight into any changes in the revenue guidance for 2021.
What’s in Moderna’s pipeline?
Moderna’s pipeline boasts a vast portfolio of vaccines including the COVID-19 vaccine alongside vaccines against HIV, Influenza and many other diseases. However, the companies pipeline also includes Cancer vaccines, Intratumoral Immuno-Oncology therapies and Intracellular Therapeutics.
This extensive list of treatments provides investors some confidence in the long term outlook of the company. The revenue growth experienced from the COVID-19 vaccine will also assist the company expand their studies on current and future therapies and vaccine efforts.
Summary – Moderna stock forecast
In summary, Moderna has outperformed both the market and analysts expectations in 2021. In addition, the company looks to maintain the beneficiary of high vaccine demand across the globe, with revenue expected to reach $18 Billion for the fiscal year. However, MRNA is currently trading at an all time high suggesting investors and fund managers will be looking to cash in on its yearly performance.
Written by Tyger Fitzpatrick, Founder of Youth Investment Group.
The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
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