Shares of Moderna $MRNA ( ▼ 5.66% ) climbed Tuesday after Bank of America lifted its price target on the biotech, citing improving economics around the company’s pipeline and cost structure.
BofA sees path to profitability despite underperform rating
Bank of America raised its price target on Moderna to $24 from $21, while maintaining an “underperform” rating. Analysts said the higher target reflects “refreshed revenue builds for lead assets,” alongside the impact of ongoing cost-cutting efforts.
BofA pointed to Moderna’s investigational oncology vaccines as a potential new revenue stream that could help return the company to profitability over the coming years, even as its near-term outlook remains challenged.
Life after the COVID vaccine boom
Moderna remains best known for its COVID-19 vaccine, which was rapidly developed in 2020 with US government backing and is still the company’s only commercial product. The firm has yet to successfully bring another therapy to market, leaving it heavily exposed as demand for COVID vaccines continues to fade.
Adding to the pressure, Moderna now faces a second Trump administration that is broadly viewed as less supportive of COVID-related public health spending, increasing the urgency for the company to diversify its revenue base.