Rothschild & Co. Downgrades Moderna to Sell Amid Concern Over Stock Valuation
Moderna's stock has surged following positive results from its experimental cancer vaccine trial, but Rothschild & Co. Redburn now considers the biotech company overvalued and downgraded it to 'sell' from 'neutral'. Analyst Simon Baker noted that while Moderna’s melanoma data was promising, the market reaction appears excessive given limited evidence of effectiveness across other cancers. The firm raised its price target for MRNA to $81 from $40, still implying a 46% downside. Despite an impressive year-to-date gain of over 400%, Moderna's shares have since lost momentum and are now trading significantly below their August peak. The downgrade contrasts with broader analyst sentiment on Wall Street, where most maintain 'hold' ratings. Moderna’s vaccine is currently only proven effective for melanoma, raising concerns about its broad application across other tumor types.
Topics: biotech cancer vaccine Moderna Rothschild & Co Redburn sell rating