By Elsa Ohlen

Moderna stock was losing ground as investors appeared increasingly doubtful its vaccine sales will be able to lift the beaten-down share price.

Goldman Sachs cut its recommendation on the stock to Neutral from Buy on Wednesday, citing a series of negative revisions to management's financial guidance in the past six months. The bank slashed its target for the share price to $51 from $99.

Shares fell 4.7% to $43.00 in early Wednesday trading. In the 12 months through Tuesday's close, the stock has fallen 56%.

Moderna became a household name because it was one of the first companies to develop a Covid-19 vaccine, leading to soaring sales in 2021 and 2022. However, it has been largely downhill from there as demand for Covid-19-related products has diminished.

It is now developing a vaccine to protect against the cytomegalovirus, or CMV, which brings flulike symptoms that can be severe in babies and people with a weakened immune system.

The Goldman analysts led by Salveen Richter said Moderna appeared unsure about the revenue stream for its respiratory vaccines. It has said it expects annual sales of between $1.5 billion and $2.5 billion but Richter sees it hitting only the lower end of that range.

Moderna stock got a boost as bird flu claimed its first victim in the U.S. The company is getting $590 million from the government to speed up the process of making a vaccine available, but that doesn't seem to have significantly changed the narrative around the company.

Goldman's price-target cut is Moderna's third in just a few days. On Monday, Evercore analysts lowered their price target to $50 from $60. On Friday, J.P. Morgan lowered its call to $40 from $45.

There are some potential positive factors on the horizon for Moderna in the medium term, Richter said. He is optimistic on its partnership with Merck to develop an individualized neoantigen therapy. Trials on cystic fibrosis, in partnership with Vertex, as well as Phase 3 trial results on the CMV vaccine could also lift the shares, he said. Both are expected in 2025.

Write to Elsa Ohlen at elsa.ohlen@barrons.com

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January 29, 2025 09:51 ET (14:51 GMT)

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