Please ensure Javascript is enabled for purposes of website accessibility

Why Moderna Stock Climbed Today

By Joe Tenebruso - Apr 16, 2021 at 5:59PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

One analyst sees gains of nearly 40% ahead for the biotech's shareholders.

What happened

Shares of Moderna (MRNA 2.58%) rose 6.8% on Friday, as analysts and investors grew more optimistic about the vaccine maker's growth prospects. 

So what

Piper Sandler analyst Edward Tenthoff repeated his overweight rating on Moderna's stock and boosted his price forecast from $208 to $234 on Thursday. His new price target represents potential returns to shareholders of roughly 37% from Moderna's current share price near $170. 

A person is holding an upwardly sloping digital stock chart.

Moderna's stock price is up sharply in recent days. Image source: Getty Images.

Tenthoff noted that data from a phase 3 study showed Moderna's authorized coronavirus vaccine, mRNA-1273, continued to demonstrate efficacy against COVID-19 of more than 90% after six months. That bodes well for sales of the drug; Tenthoff projects that Moderna will generate mRNA-1273 revenue of $10.85 billion in 2021 and $15.75 billion in 2022.

Tenthoff also praised Moderna's "rich pipeline" of mRNA-based drugs. The biotech currently has 14 vaccine candidates in clinical trials.  

Now what

Investors have bid up Moderna's shares after the Centers for Disease Control and Prevention (CDC) and the Food and Drug Administration (FDA) asked states to temporarily halt immunizations with Johnson & Johnson's COVID-19 vaccine, while they investigated cases of blood clots in people who were administered the drug. With global COVID-19 cases rising rapidly around the world and safety concerns about rival vaccines mounting, demand for Moderna's coronavirus vaccine could soar. Its stock, in turn, appears set to reward shareholders with even more gains in the months ahead.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Moderna, Inc. Stock Quote
Moderna, Inc.
MRNA
$159.56 (2.58%) $4.02
Piper Sandler Companies Stock Quote
Piper Sandler Companies
PIPR
$111.38 (-2.08%) $-2.37

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
323%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/07/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.