Moderna Stock Stays a Buy for Brookline Despite Recent Drop

Brookline Capital maintains a $310 price target on Moderna stock

Moderna stock has been on a wild ride in recent months. The stock surged to an all-time high of over $480 in August 2021, on the back of strong demand for its COVID-19 vaccine, Spikevax.

However, the stock has since come under pressure, and is now trading at around $190. The decline in Moderna's stock price has been attributed to a number of factors, including concerns about the safety of its vaccine, the emergence of new COVID-19 variants, and the increasing competition from other vaccine manufacturers.

Despite the recent decline in its stock price, Brookline Capital remains bullish on Moderna.

In a recent research note, Brookline analyst Jacob Johnson maintained his $310 price target on Moderna stock. Johnson cited the company's strong pipeline of new products, including its mRNA-based cancer vaccines, as well as its continued progress in developing new COVID-19 vaccines and therapeutics.

Johnson also noted that Moderna has a strong balance sheet, with over $17 billion in cash and investments.

This gives the company the financial flexibility to invest in its research and development pipeline, as well as to pursue acquisitions.

Why Brookline thinks Moderna stock is a buy

Here are some of the reasons why Brookline Capital believes Moderna stock is a buy:

• Strong pipeline of new products: Moderna has a deep pipeline of new products, including its mRNA-based cancer vaccines, which are in late-stage clinical trials.
• Continued progress on COVID-19 vaccines and therapeutics: Moderna is continuing to develop new COVID-19 vaccines and therapeutics, which could help the company maintain its leadership in the fight against the pandemic.
• Strong balance sheet: Moderna has a strong balance sheet, with over $17 billion in cash and investments. This gives the company the financial flexibility to invest in its research and development pipeline, as well as to pursue acquisitions.

Risks to consider

Of course, there are also some risks to consider before investing in Moderna stock.

• Competition: Moderna faces competition from a number of other pharmaceutical companies, including Pfizer, BioNTech, and Johnson & Johnson. This competition could lead to lower prices and margins for Moderna's products.
• Safety concerns: There have been some safety concerns raised about Moderna's COVID-19 vaccine, including reports of heart inflammation in young people. These concerns could lead to lower demand for the vaccine and damage Moderna's reputation.
• Regulatory risk: Moderna's products are subject to regulatory approval, and there is always the risk that a product could be delayed or even denied approval. This could have a significant impact on Moderna's stock price.

Overall, Brookline Capital believes that the risks associated with Moderna stock are outweighed by the potential rewards.

The company has a strong pipeline of new products, a strong balance sheet, and a leadership position in the fight against COVID-19. As a result, Brookline maintains its $310 price target on Moderna stock.

Disclaimer:

The information contained in this article is for informational purposes only and should not be construed as investment advice. Brookline Capital is not registered as an investment adviser with the SEC and does not provide investment advice. Investors should consult with a qualified financial adviser before making any investment decisions.