Moderna shares skryrocket as analyst sees over $5 billion a year in Covid-19 vaccine sales

accreditation
(Getty)
(Getty)
  • Biotech firm Moderna shares touched their highest in nearly two months on Monday. 
  • The stock has seen a more than 230% surge since the start of the year. 
  • With a 30 000 person late-stage study set to kick off sometime this month, Moderna’s shot leads the pack in the race to get a vaccine to the world at large.


Biotech company Moderna surged on Monday, spurred by a positive review from a Jefferies analyst who said its experimental vaccine for Covid-19 could generate sales of more than $5 billion a year, as well as the stock’s pending addition to the Nasdaq-100 index.

The stock will replace CoStar Group in the Nasdaq-100 starting 20 July. The inclusion helped lead to a gain of as much as 12% as Moderna shares touched the highest in nearly two months.

The more than 230% surge for the stock since the start of the year has split Wall Street as to “what will happen or if the vaccine will even work,” and investors are “hugely divided on valuation,” analyst Michael Yee said, initiating the stock at a buy.

“We believe the Street will be surprised to the upside if the Covid-19 vaccine works, gets approved by early 2021, and there are multi-billion dollars of purchase orders from USA and around the world,” he said.

With a 30 000 person late-stage study set to kick off sometime this month, Moderna’s shot leads the pack in the race to get a vaccine to the world at large as the pandemic continues to spread.

Yee predicts mRNA-1273, as the inoculation is known, will get “at least” an emergency use authorization by early next year. There are more than 20 candidates in human testing, while at least another 130 vaccines are in even earlier stages of development, according to the World Health Organization.

The analyst assigned the biotechnology company a $90 price target, which is largely in-line with the $88 average price target of analysts tracked by Bloomberg. The Cambridge, Massachusetts-based company has 12 other buys and a single hold rating, while no analyst followed by Bloomberg currently rates it a sell.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
15.82
+0.3%
Rand - Pound
19.73
+0.3%
Rand - Euro
16.74
+0.3%
Rand - Aus dollar
11.17
+0.1%
Rand - Yen
0.12
+0.4%
Gold
1,843.82
+0.1%
Silver
22.01
+0.4%
Palladium
1,982.00
-1.3%
Platinum
962.00
-0.5%
Brent Crude
112.04
+2.6%
Top 40
61,478
-0.4%
All Share
68,083
-0.2%
Resource 10
72,709
+1.9%
Industrial 25
73,759
-2.7%
Financial 15
15,902
+1.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot