On Friday, Oppenheimer increased its price target for Moderna (NASDAQ:MRNA) shares to $163 from the previous $142, while maintaining an Outperform rating on the stock. This adjustment follows Moderna's recent first-quarter financial report and investor call on Thursday.
Moderna surpassed Oppenheimer's conservative revenue expectations for its COVID-19 vaccine in the first quarter of 2024. The company's Chief Financial Officer expressed satisfaction with the revenue trajectory, emphasizing the significance of a new contract signed with Brazil and the ongoing negotiations for vaccine contracts slated for Fall 2024.
The company's operating expenses for the first quarter were reported to be 13% lower than what Oppenheimer had anticipated. Additionally, Moderna has confirmed that its financial guidance for the full year 2024 remains unchanged.
The update from Moderna also included insights into their late-stage pipeline. The company has added three new tumor types to its mRNA-4157 program, is anticipating approval for its mRNA-1345, which targets Respiratory Syncytial Virus (RSV), in the first half of 2024, and foresees a potential filing for mRNA-1010 within the year.
Additionally, phase 3 data for a combined flu and COVID-19 vaccine is expected in 2024, along with interim data from a phase 3 study of mRNA-1647, a vaccine for cytomegalovirus (CMV), by the end of 2024.
Based on these developments and updated financial numbers, Oppenheimer's analyst has reaffirmed a bullish stance on Moderna's stock, leading to the raised price target.
InvestingPro Insights
Following Oppenheimer's updated outlook on Moderna, it's worth noting that the company has been actively enhancing shareholder value, as reflected by management's aggressive share buybacks, an InvestingPro Tip that underscores a commitment to capital returns. Additionally, Moderna's balance sheet strength is evident with more cash than debt, providing financial flexibility in advancing its pipeline and managing operations.
InvestingPro Data indicates a challenging financial landscape for Moderna, with a significant revenue decline over the last twelve months as of Q1 2024, and a gross profit margin deeply in the negative territory. However, investors have recently rewarded the company with a strong return over the last week, month, three months, and six months, signaling market confidence in its future prospects despite the current financial headwinds.
For readers looking to delve deeper into Moderna's financial health and future prospects, there are additional InvestingPro Tips available at https://www.investing.com/pro/MRNA. These tips provide nuanced insights into the company's performance and can be accessed with an exclusive 10% discount using the coupon code PRONEWS24 on a yearly or biyearly Pro and Pro+ subscription.
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