On Tuesday, Moderna (NASDAQ:MRNA) shares experienced a significant rise, climbing 11.7%. Following the move Bernstein SocGen Group maintains a Market Perform rating for Moderna stock, with a steady price target of $55.00.
Despite this surge, the stock remains well below its early November valuation, the analyst said. The sudden increase in Moderna's stock is attributed to growing concerns over Bird Flu.
The firm acknowledges the recent gain as a reaction to the Bird Flu situation but indicates that other respiratory infections might not have a substantial impact on Moderna's financial performance. Specifically, the firm notes that Moderna's MResvia, a vaccine for Respiratory Syncytial Virus (RSV), holds a minor position in the market. Therefore, an increase in RSV vaccinations is not expected to significantly affect the company's revenues.
The firm also points out that COVID-19 vaccinations typically take place between September and December. High rates of infection could potentially reduce the number of vaccinations since it is recommended that patients wait more than three months after an infection before receiving another vaccination. This could influence the timing and volume of COVID-19 vaccine administration.
Finally, while Moderna is in the process of developing vaccines for endemic influenza, the company does not currently have any such products on the market. This means that, despite the concerns driving the stock's rise, Moderna's current product offerings do not directly benefit from the increased attention on respiratory diseases at this time.
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