Moderna Inc (NASDAQ:MRNA, ETR:0QF) shares added more than 8% during Tuesday’s session as investors remained optimistic about the company’s long-term strategy following mixed fourth quarter earnings.
The company last week reported a wider-than-expected loss for Q4, as revenue surpassed expectations.
Goldman Sachs analysts noted Moderna’s mixed results, with the company hitting the top end of its product revenue guidance for fiscal 2024 at $3.1 billion but earnings below expectations due to a one-time manufacturing charge.
The reaffirmed fiscal 2025 revenue guidance of $1.5 billion to $2.5 billion aligns with the lower end of Goldman Sachs’ estimate but suggests limited near-term growth.
They see uncertainty around the COVID-flu combination vaccine's approval, given the dependency on Phase 3 data timing.
While analysts acknowledge Moderna’s promising pipeline, including the MRK-partnered cancer therapy and upcoming data on cystic fibrosis, cytomegalovirus, and norovirus vaccines, analysts noted a lack of significant near-term catalysts, particularly for the cancer program.
They also are looking out for further cost reductions to support profitability and see the upcoming RSV vaccine approval as a potential positive, with a June 2025 decision expected.
Goldman Sachs has a $51 price target on Moderna, which traded hands at about $36 on Tuesday afternoon.