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UBS Upgrades Moderna Stock on Broader Vaccine Uses
Modern mRNA Vaccines Have Great Potential For Future Uses
According to UBS, the potential for broader uses of Moderna's mRNA vaccines is not being fully appreciated by investors. As a result, UBS has upgraded Moderna's rating from neutral to buy, despite having lowered its price target to $191 from $221, indicating a potential upside of 61% from the previous day's close. Moderna's shares have dipped by 34% this year, prompting the bank to highlight the buying opportunity provided by the current stock price.
Other Products Besides Covid-19 Vaccines Have Positive Growth Prospects
While the future of coronavirus market revenues may be in doubt, the decline in Moderna's stock price can provide a buying opportunity. The stock price currently only considers the downside risk of coronavirus vaccines, failing to reflect the potential for other products. Vaccines for RSV, CMV, and the flu were noted by UBS as positive growth prospects for Moderna, and the CMV vaccine was deemed to have high potential to be a major upside driver over the next two years.
Potential for mRNA in Treating Latent Viruses and Birth Defects
UBS suggests that latent viruses could be the next big hurdle for mRNA, as there currently aren't any successful vaccines for these types of viruses. CMV is also the leading cause of birth defects, and as such, developing a vaccine for it represents a significant opportunity for Moderna. A successful vaccine for CMV would have links to other projects, such as EBV.
Moderna's mRNA vaccines have a wide range of potential uses beyond Covid-19 vaccines. UBS suggests that investors who look to the long-term success of the company should take its potential future revenue streams into consideration when making investment decisions.
As Moderna's potential revenue streams expand beyond COVID-19 vaccinations, new businesses should take note of the potential growth opportunities. With a market capitalization of $98.4 billion, an emphasis on innovative therapies, and a strong pipeline of development for its mRNA vaccines and treatments, Moderna presents itself as an excellent investment opportunity. As it stands, the potential to treat latent virus concerns and the development of vaccines for other illnesses, such as the CMV vaccine, represents a potentially lucrative avenue for investors.
The current state of Moderna's stock leaves considerable room for growth in this sector, indicating the potential for new businesses wanting to invest in this industry. Moderna’s mRNA technology is highly versatile and capable of numerous potential uses, such as developing treatments for genetic diseases and improving the effectiveness of cancer therapies. Therefore, businesses with an interest in personalized medicine, biotechnology, and disease treatments might consider partnership or investment opportunities with Moderna.
Moderna's innovative therapies and promising pipeline coupled with its potential for future growth creates a unique investment space. As its mRNA-based products expand to treat more illnesses, businesses should consider the tremendous potential this industry could have for them, potentially becoming the future for individualized medicine.
