Moderna Downgraded by Argus
Investing.com — Argus downgraded Moderna Inc (BMV:MRNA) (NASDAQ:MRNA) from "buy" to "hold" due to declining sales of its COVID-19 vaccine and limited near-term growth prospects.
The brokerage noted that while Moderna’s COVID-19 vaccine was a strong performer during the pandemic, sales have dropped as the virus has entered a new phase.
Despite offering robust protection, Moderna's RSV vaccine faces challenges as it was approved over a year after competing products. An analyst commented, "The RSV vaccine provides robust protection against this virus; however, it was approved more than a year after two other competing products, limiting its sales as doctors had already become accustomed to these alternatives."
Argus acknowledged Moderna’s extensive pipeline of 36 mRNA development candidates across 45 programs but highlighted that these require significant time and investment to reach the market.
An upgrade would depend on Moderna returning to earnings growth and securing more product approvals, Argus added. The firm maintained its five-year "buy" rating, reflecting optimism about the company’s long-term potential.
The analyst stated, "We would consider an upgrade when the company can return to a period of earnings growth and has more of its product candidates approved and sold on the market."
Comments (0)