Rothschild & Co. Redburn downgraded Moderna (NASDAQ:MRNA) from "neutral" to "sell," citing valuation concerns following a significant stock price increase. Redburn raised its price target on Moderna shares from $40 to $81. This new target remains considerably below the stock's current trading price. The downgrade follows a surge in Moderna shares during August. This surge occurred after positive Phase 3 trial results for its personalized cancer vaccine, developed with Merck.
Analyst Simon Baker noted strong melanoma vaccine trial results. However, Baker believes the market's reaction excessively priced in broad usage across many tumor types, for which little data exists. The firm struggles to reconcile the stock's current valuation with available clinical evidence. Despite the downgrade, some other analysts recently upgraded the stock based on the cancer drug's progress.