Shares of Moderna (NASDAQ: MRNA) Wednesday fell 6.9%, following a warning from analysts at a respected investment bank.
Morgan Stanley analyst Matthew Harrison downgraded his rating on Moderna’s stock from overweight to equal weight, although he increased his price prediction from $ 100 to $ 150. Harrison sees more long-term upside gains, but he warned investors’ expectations in the short term term may be too long.
Hence, he believes it is best to wait for opportunities to buy the stock at a lower price. “We think it is appropriate to go on the sidelines for now and look for entry points to better realize the potential long-term value,” said Harrison.
Its downgrade essentially comes down to appreciation. Moderna’s stock price is up a staggering 609% in 2020. Investors have increased their shares following the promising performance of their coronavirus candidate, mRNA-1273, which has been shown in clinical studies to be a whopping 94.1% effective against COVID-19. . In fact, Harrison argues that Moderna’s stock price has exceeded the current value of the biotech, but admits that the long-term future remains bright.