Moderna (MRNA) stock plummeted in January after the company reduced its sales outlook for 2024 and 2025, missing targets in a cytomegalovirus study. The stock is now expected to generate $3 billion to $3.1 billion in 2024 sales, down from previous projections of $2.5 billion to $3.5 billion.
Analysts are skeptical about Moderna’s prospects, with William Blair’s Myles Minter calling the company a “show-me story” and Leerink Partners’ Mani Foroohar stating there is “no inflection in sight.” The decline in sales expectations is attributed to disappointing results from the cytomegalovirus vaccine, which failed to show strong enough effectiveness to stop an ongoing study.
However, Moderna’s technology focuses on helping the body create specific messenger RNA, which has shown promise in its COVID-19 vaccine. The company sells two products: Spikevax and mResvia, a respiratory syncytial virus vaccine that causes cold-like symptoms but can be deadly in people with compromised immune systems.
Despite the promising move after the CDC announced a spike in Covid tests, Moderna stock remains a sell. Analysts expect years of losses, and its pipeline is yet to show significant results. The company’s COVID-19 vaccine has yet to hit a bottom, and its RSV vaccine faces stiff competition with Pfizer and GSK.
Moderna’s reduced guidance and disappointing vaccine results have cast a shadow over the stock, leading investors to question its long-term prospects. With sales expectations down and profitability not expected until 2029, Moderna stock is showing bearish fundamentals and technicals.
Source: https://www.investors.com/news/technology/moderna-stock-buy-or-sell