Moderna stock target cut at BofA as key challenges persist
Investing.com -- Bank of America lowered its price target on Moderna (NASDAQ: MRNA ) to $34 from $41 in a note Tuesday, maintaining an Underperform rating on the stock ahead of the company’s fourth-quarter earnings report on February 14.
The bank’s analysts cited weaker sales expectations and ongoing challenges in diversifying beyond COVID-related revenues.
“For Q4, our revenues decrease -16%, primarily due to lower sales assumptions to align with revised company guidance provided at a broker conference in mid-Jan,” BofA analysts wrote.
Earnings per share (EPS) estimates for the quarter were also revised down by a similar amount.
Looking ahead, BofA cut its 2025 and 2026 revenue forecasts by 18% and 15%, respectively. While negative EPS projections slightly improved due to cost adjustments, the firm remains skeptical about Moderna’s ability to break even before 2030, later than the company’s own projections.
The bank said Moderna’s earnings call is expected to focus on 2025 guidance, potential regulatory and policy changes under a new U.S. administration, and updates on pipeline developments.
“Expectations for new launches in 2026+ and upcoming clinical catalysts” will be key areas of investor interest, the analysts noted.
BofA reiterated its concerns about Moderna’s business outlook, emphasizing that the company remains heavily dependent on COVID-related sales.
“The company’s near- and intermediate-term prospects are still largely tied to COVID revenue streams, which we find problematic because of forecasting difficulty,” the analysts wrote.
They also expressed skepticism about Moderna’s broader pipeline, stating they are “unconvinced on MRNA’s other programs (such as RSV, CMV) that are meant to diversify its reliance on COVID revenues.”
With lower sales forecasts and ongoing uncertainty about long-term growth, BofA maintains a cautious stance on Moderna’s stock, reinforcing its Underperform rating.