What happened
Coronavirus stock Moderna (MRNA 0.79%) had a Monday reminiscent of some of its more bullish days in the thick of the pandemic. The biotech's share price rocketed about 7% higher, thanks in no small part to an analyst's recommendation upgrade.
So what
On Monday morning, TD Cowen prognosticator Tyler Van Buren changed his recommendation on Moderna from market perform (read: hold) to outperform (buy). In doing so, he hiked his price target on the biotech stock 20% higher, from $150 per share to $180.
Van Buren sees several catalysts that should push Moderna ahead in the coming years. He pointed out in a new research note that the company will be a leader in the treatment of respiratory syncytial virus (RSV), a common respiratory tract infection. Moderna is also set to publish data from a clinical trial of a flu vaccine by the end of this month, which the analyst expects will be "superior."
Additionally, he wrote, "If MRNA is able to advance ~1 program per year, the rare disease franchise could point to ~$5B of annual peak sales in five years' time."
Now what
As it developed and still produces one of the world's leading coronavirus vaccines, Spikevax, Moderna was quite the stock market star when we were going through the worst of the pandemic. Since then, however, many investors have moved on, and the company's luster has faded.
Yet the mRNA-based technology that's foundational to Spikevax can theoretically be harnessed to treat a very wide variety of ailments. So if the company plays its cards right, Spikevax will be only the start of a long and lucrative climb up the ladder of success.
