Citi Downgrades Moderna to Sell Amid Concerns Over Stock Valuation
Citi analyst Geoff Meacham has downgraded Moderna (MRNA) to a sell rating, citing concerns over the stock's valuation. Despite raising its price target from $60 to $80—implying about 60% downside from recent levels—the firm argues that Moderna’s current market cap is unsustainable compared to peers and based on pipeline net present value (NPV). The biotech company has seen a massive rally of over 223% since late August, following positive trial results for its experimental cancer vaccine intismeran autogene combined with Merck's Keytruda. Meacham notes that the valuation assumes unrealistic sales and probability-of-success assumptions. Moderna’s shares closed at $203.46 on Tuesday but fell nearly 6% in premarket trading after Citi’s downgrade. The analyst highlighted challenges beyond melanoma, where the drug showed promise, noting distinct tumor biology hurdles for renal, lung, and bladder cancers. Most analysts remain cautious or bullish; LSEG data shows that only six of 24 rate Moderna as a buy or strong buy. The firm's bearish stance contrasts with recent optimism around Moderna’s pipeline progress but aligns with broader skepticism about the stock’s current valuation.
Topics: analyst report Citi intismeran autogene Moderna stock downgrade