1. Moderna Inc. (NASDAQ:MRNA)
Number of Hedge Fund Holders: 39
Average Upside: 86.34%
Moderna, Inc. (NASDAQ:MRNA) is a pharmaceutical and biotechnology company specializing in RNA therapeutics, particularly mRNA vaccines. The company gained widespread recognition for its COVID-19 vaccine, which became one of the first mRNA vaccines to be developed and distributed globally.
Three years ago, Moderna, Inc. (NASDAQ:MRNA) entered the fast-growing field of gene editing by launching Moderna Genomics and partnering with Metagenomi. Although the collaboration with Metagenomi came to an end this year, Moderna, Inc. (NASDAQ:MRNA) remains active in gene editing through other partnerships, including a collaboration with Life Edit Therapeutics and a second genetic medicine agreement with Generation Bio.
The rollout of Moderna’s RSV vaccine and the positive opinion from the EMA have bolstered investor confidence, while the company’s broader product pipeline also demonstrates potential. This includes favorable Phase III results for the flu/COVID-19 combination vaccine and strategic partnerships with BARDA and Mitsubishi Tanabe Pharma. Despite this, Moderna’s revenue fell by 29.94% in Q2 2024, totaling $241 million. This decline was primarily driven by decreased sales volumes of the COVID-19 vaccine outside the U.S., heightened competition for respiratory vaccines in the U.S., and the possibility of revenue deferrals from 2024 to 2025.
Analyst sentiment on Moderna, Inc. (NASDAQ:MRNA) has been mixed. Piper Sandler lowered its price target for the company from $157 to $115 while maintaining an Overweight rating. In contrast, RBC Capital reduced its target from $90 to $75.
As of the end of the second quarter of 2024, 39 out of the 912 hedge funds monitored by Insider Monkey held stakes in Moderna, Inc. (NASDAQ:MRNA).
Baron Health Care Fund made the following comment about Moderna, Inc. (NASDAQ:MRNA) in its Q1 2023 investor letter:
“Moderna, Inc. (NASDAQ:MRNA) is a leader in the emerging field of mRNA-based vaccines and therapeutics and was one of the three main producers of the COVID vaccine. Shares fell during the quarter. We believe as COVID shifts away from pandemic status and becomes an increasingly commercial market (rather than government funded), there is increasing investor uncertainty around what a booster market could look like, which is pressuring shares. Looking beyond COVID, we think Moderna has the potential to disrupt the biopharmaceutical industry, from infectious disease vaccines to oncology, and we remain shareholders.”
While we acknowledge the potential of MRNA, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MRNA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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