JPMorgan Downgrades Moderna (MRNA) to Neutral on Valuation Following 385% YTD Run-Up

JPMorgan analyst Cory Kasimov downgraded Moderna (NASDAQ: MRNA) from Overweight to Neutral with a price target of $89.00 (from $60.00), citing valuation.

The analyst comments "We are downgrading shares of MRNA to Neutral from OW on valuation following the run in shares that are now up 385% YTD vs. the NBI +19.5%; over the last 12 months, MRNA is up 572%. This performance is of course being driven by the equally impressive and rapid development of a potential vaccine for COVID-19 (thoughts on detailed Phase 1 results here). To be clear, this is not a call on any sort of diminished expectations around the company or mRNA-1273; we remain bullish on Moderna’s long-term outlook, disruptive platform (in the vaccine space and otherwise), and chances of being one of the first companies to bring a COVID-19 vaccine to market. Success with mRNA1273 should also further de-risk / prove the power of Moderna’s platform more broadly. However, with MRNA now sporting a $37B market cap despite a significant number of unknowns regarding the COVID-19 pandemic broadly and the vaccine opportunity specifically (incl duration, price, competition, etc.), we find it increasingly difficult to pull additional levers in our model any further at this point. Momentum (and more favorable data points for ‘1273) could certainly drive MRNA even higher, but we’re simply unable to continue to fundamentally justify it. Accordingly, we would look to add to positions at a more attractive valuation."

For an analyst ratings summary and ratings history on Moderna click here. For more ratings news on Moderna click here.

Shares of Moderna closed at $98.70 yesterday.

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