Why did Moderna stock go up today?

Moderna’s shares rose by approximately 7% on Monday as healthcare companies posted gains after losing for five consecutive sessions. Cowen, an investment bank, upgraded the Cambridge vaccine-maker to Outperform from Market Perform earlier that day, citing a favorable catalyst path even as the COVID-19 vaccine’s sales declined. Tyler Van Buren, an analyst at Cowen, raised Moderna’s stock price target to $180 per share from $150 per share, believing the company to be successful in developing effective vaccines for various diseases, given its success with COVID-19 vaccines. Cowen provided positive views on Moderna’s upcoming data for its personalized cancer vaccine as well as its flu vaccine. The firm predicted the company could become a vaccine market leader for the respiratory syncytial virus (RSV).

Moderna’s gains came alongside Pfizer’s announcement that it would acquire Seagen, a cancer-focused biotech company, highlighting the pharma giant’s latest deal-making activity driven by its pandemic-driven cash pile. Seeking Alpha contributor Biologics recently issued a Strong Buy rating on Moderna, stating that the company is more than just a COVID-19 vaccine maker.

Moderna’s vaccine is one of three vaccines that have been authorized for emergency use by the Food and Drug Administration (FDA) to counteract the COVID-19 pandemic. Despite the initial success of the vaccine, the company has witnessed a significant reduction in new orders in the second half of 2021 as vaccine demand wanes. However, the company has released positive data regarding its COVID-19 booster shots, which could potentially bolster sales in the future.

Moderna’s technology is the foundation of the personalized cancer vaccine space, which has been gathering momentum among investors of late. According to analysts, the application of its mRNA technology to the personalized cancer vaccine implies that the vaccine could be altered to target other types of cancer cells. Moderna has benefited significantly from its success with its COVID-19 vaccine, with a market capitalization of approximately $105 billion as of August 17th.



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