Analysts Are Upgrading These 5 Stocks

02. Moderna, Inc. (NASDAQ:MRNA)

Number of Hedge Fund Holders: 40

UBS analysts, on June 26, upgraded Moderna, Inc. (NASDAQ:MRNA) shares from Neutral to Buy, with a revised price target of $191 per share (previously $221). They believe that Moderna, Inc. (NASDAQ:MRNA) value extends beyond its COVID vaccine. The analysts note that Moderna, Inc. (NASDAQ:MRNA) shares have declined approximately 35% year-to-date and around 75% from their pandemic highs in 2021.

The analysts justify their upgrade for two main reasons. Firstly, they consider the current valuation to reflect the significant risks to COVID vaccine revenues but not the potential of Moderna’s pipeline beyond COVID. Secondly, they highlight positive progress in Moderna’s pipeline, including the development of mRNA vaccines for respiratory syncytial virus (RSV), flu, and cytomegalovirus (CMV).

UBS believes that Moderna, Inc. (NASDAQ:MRNA) potential for mRNA vaccines beyond COVID is undervalued. They specifically identify the CMV vaccine as a major potential driver of upside over the next one to two years. Additionally, they see a substantial market opportunity exceeding $10 billion for Moderna’s RSV vaccines. The analysts estimate that the combination of COVID and RSV vaccines alone adds significant value to Moderna’s stock, with a valuation of $123 per share.