Shares of biotechnology company Moderna Inc., which are listed on the NASDAQ, continued to struggle on declining demand for its COVID-19 vaccine, which drove its revenue in 2021 and 2022 and helped propel it to prominence during the pandemic.
On Wednesday, Moderna shares fell 9.4 percent to USD40.72 as analysts cast doubt on its earnings prospects. The biotech company, which is scheduled to release 2024 results later in February, is expected to post a loss for a second year in a row.
Goldman Sachs has downgraded its stock call on Moderna to “Neutral” from “Buy,” citing multiple negative revisions to the company’s earnings forecast over the past six months. The investment bank also slashed its price target for Moderna to USD51 from USD99, reflecting a bleak outlook for future growth.
This downgrade comes as Moderna, once riding high on its vaccine sales, now faces uncertainty in generating consistent revenue beyond its pandemic-related products. Over the past 12 months, Moderna shares have lost 56 percent of its value.
The company’s earnings outlook has become increasingly uncertain, with Moderna projecting significantly lower revenue in the upcoming years compared to the peak of its vaccine sales. As global demand for COVID-19 vaccines has tapered off, the company has yet to establish a stable pipeline of new products or markets to drive growth, leaving investors worried about the long-term trajectory of its stock.
