Why MRNA Stock Is Retreating

mRNA vaccine developer Moderna (MRNA) is sinking 9% after Goldman Sachs downgraded the shares to Neutral from Buy.

Why Goldman Cut Its Rating on MRNA

Earlier this month, Moderna reduced its 2025 revenue guidance, based on relatively weak demand for its Covid and RSV shots.

A scientist surrounded by vials and beakers in a modern laboratory, proudly displaying a vaccine.

The latest guidance reduction was the second time in the last six months that the firm has revised its forecast in a negative direction, according to Goldman analyst Salveen Richter. Consequently, Richter believes that Moderna is uncertain about the outlook of its Covid and RSV vaccines.

The analyst cut her price target on MRNA to $51 from $99.

A Potential Silver Lining for Moderna

On a positive note, Richter believes that Moderna’s personalized cancer vaccine can boost the firm’s revenue in the medium term, and the analyst is upbeat about the performance of the shot in trials.

But she does not expect the jab, which MRNA is developing in partnership with Merck (MRK), to lift MRNA stock this year.

Ellison’s Statement on Potential Cancer Vaccines

Last week, Oracle Chairman Larry Ellison asserted that AI could be used to assist in the development of mRNA-based cancer vaccines. His statement resulted in a 7% rally by MRNA stock on Jan. 22. The shares jumped another 10% on Jan. 23.

While we acknowledge the potential of MRNA, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. 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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Disclosure: None. This article is originally published at Insider Monkey.