Analysts Think These 5 Stocks Are Overvalued

In this article, we discuss 5 stocks that analysts think are overvalued. If you want our detailed analysis of these stocks, go directly to Analysts Think These 10 Stocks Are Overvalued. 

5. Moderna, Inc. (NASDAQ:MRNA)

Number of Hedge Fund Holders: 49

Moderna, Inc. (NASDAQ:MRNA) is a Massachusetts-based biotechnology company focused on creating therapeutics and vaccines to treat infectious and rare diseases, immuno-oncology, cardiovascular diseases, and auto-immune diseases. The company missed on earnings and revenue consensus in Q3 2021. 

Bank of America analyst Geoff Meacham stated on August 11 that he believes that Moderna, Inc. (NASDAQ:MRNA) is “ridiculously” overvalued, and the business model does not reconcile with the valuation. He stated that the valuation assumes that the Moderna, Inc. (NASDAQ:MRNA) pipeline will be completely successful, and COVID-19 vaccine sales will reach a billion units till 2038, which are not safe assumptions. The analyst called for a 75% pullback on the stock, and over the last 6 months, Moderna, Inc. (NASDAQ:MRNA) shares have dropped roughly 67%, in line with Meacham’s forecast. 

Piper Sandler analyst Edward Tenthoff believes the FDA’s full approval today of Spikevax “broadly de-risks Moderna’s rich mRNA vaccine pipeline.” He reiterated on January 31 an Overweight rating on Moderna, Inc. (NASDAQ:MRNA) shares with a $348 price target. 

In Q3 2021, 49 hedge funds were bullish on Moderna, Inc. (NASDAQ:MRNA), up from 37 funds in the prior quarter. Billionaire Philippe Laffont’s Coatue Management is the biggest Moderna, Inc. (NASDAQ:MRNA) stakeholder, with more than 6 million shares worth $2.32 billion. 

Here is what Carillon Tower Advisers has to say about Moderna, Inc. (NASDAQ:MRNA) in its Q3 2021 investor letter:

“Moderna is a biotechnology company pioneering messenger RNA (mRNA) therapeutics and vaccines. The stock proved to be an impressive contributor once again in the quarter, as investors continue to evaluate the potential for future growth driven primarily by the firm’s revolutionary COVID-19 vaccine. Strong global demand for the vaccine may persist for the foreseeable future in order to maintain immunity as well as provide protection against any additional future variants. The potential for the firm’s mRNA technology to be used in a number of other use cases, specifically influenza, could also provide an additional tailwind for future growth.”