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Incredible Growth at Uncomfortable Price By TipRanks

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© Reuters.Moderna Stock: Incredible Growth at Uncomfortable Price

Moderna The company (NASDAQ) has a strong argument to be recognized as one of the world’s top innovators. Spikevax is the company’s revolutionary vaccine that has helped stop the spread COVID-19.

Moderna is expected to continue cash flow steady over the next 18 month, even though the pandemic may not be over.

Investors have been able to drive the highest echelons of the financial world into the stratosphere with COVID-19 vaccines. A company that uses mRNA technology to create a remarkable product could open the door for new treatments of diseases other than COVID-19.

The company’s new cancer vaccines are in clinical trials and could prove to be an important needle-mover for MRNA stocks for the future. There could be unimaginable benefits to an effective and safe immunotherapy treatment.

However, many of the mRNA vaccines for cancer are still in phase 1 of clinical trials. Investors shouldn’t be expecting anything major from the company any time soon. TipRanks has Moderna stock chart.

MRNA stock is a stock that could support its innovation momentum for those who are willing to keep it.

It is clear that mRNA technology has great potential beyond COVID-19. The name is still worth a lot, but the valuation seems questionable. I’m therefore bearish.

Research on mRNA

Although the company’s current list of cancer vaccines has experienced setbacks in clinical trials, it still has numerous clinical trials including those for seasonal flu or Zika virus vaccines.

What if one trial is successful? It is difficult to say. Given the uncertain environment in which treatments are progressing through clinical trials, stocks of biotechnology remain highly speculative.

Valuation

Moderna’s trails pipeline is very exciting but the valuation of this asset is another matter.

This stock is now at an overvalued 18.6 times its annual sales after rising by 189% in the year to date. This kind of rally is unheard of, and there’s likely to be a lot of euphoria.

Moderna’s pipeline of vaccines would require more than one hit in order to push the needle higher.

Wall Street Take

TipRanks analyst ratings consensus rates MRNA stock as a Hold. Three Buy recommendations are available, seven Hold recommendations are offered, and two Sell recommendations are provided by the 12 analysts.

The average Moderna price target is $363.13. The price targets of analysts range from $115 to $485 per shares, with a minimum of $115.

Bottom line

Moderna may be one of the best companies in the world, but the stock can easily be cut in half while still being highly valued.

Moderna, in short, is an excellent company that has a very questionable value.

Disclosure: Joey Frenette didn’t hold any positions in the securities listed in this article at the time it was published.

Disclaimer: This article is solely the author’s opinion and does not reflect the opinions of TipRanks and its affiliates. It should only be used for informational purposes. TipRanks does not warrant the accuracy, reliability or completeness of this information. The article does not constitute a solicitation or recommendation to buy or sell securities. The article does not provide legal, financial, investment, or professional advice. It also doesn’t take into consideration the individual needs or requirements. Neither is the information contained in it a complete or comprehensive statement about the subject or issues discussed. TipRanks or its affiliates are not responsible for the contents of this article. Any action you take based on the information is your responsibility. TipRanks and its affiliates do not endorse or recommend this link. Past performance is not indicative of future results, prices or performance.ReplyForwardMS



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