Moderna Share Price Forecast November 2021 – Time to Buy MRNA?
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Shares of pharmaceutical and biotechnology company Moderna (NASDAQ: MRNA) are in the red today, after closing at $276.38 as of November 23rd (19:59 EST). MRNA shares have surged almost 180% over the past year. As countries worldwide have rushed to buy Moderna’s primary product, investors have also started to buy shares in the Covid-19 vaccine maker.
Moderna – Technical Analysis
According to Moderna’s financial statement, the market cap of the company is currently at $112.058 billion with total assets worth $20.923 billion. Revenue for 2020 was at $803.39 million with a profit margin of -92.99% compared to $60.21 million in 2019.
Oscillators for Moderna such as Relative Strength Index (14)(46.92), Stochastic %K (14, 3, 3)(54.97), Commodity Channel Index (20)(−1.00), Average Directional Index (14)(32.51) and Awesome Oscillator(−34.37) are neutral. On the other hand, Simple Moving Average (20)(277.00), Exponential Moving Average (30)(289.49), Simple Moving Average (30)(296.02) and Exponential Moving Average (50)(308.49) and Simple Moving Average (50)(329.15) are indicating a sell action.
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Recent Developments
Moderna reported earnings per share of $7.70 for the period ending 30 September. While revenues accounted for $5 billion, the company expects vaccine sales to be lower throughout the rest of 2021. While it was initially projected to be $20 billion of sales, the new revised target is $18 billion. However, analysts expect sales t only drop modestly in 2022 as the company has $17 billion in signed advanced purchase agreements in place for next year.
While initially, Moderna’s vaccine was just one of three options available to the world, there now exist a myriad of other treatment options for the Coronavirus. Its competitors which consist of more potential vaccine makers are also stepping up their development programs and seeking regulatory approval. Moderna started the process of recruiting patients for a Phase 3 trial of its mRNA Cytomegalovirus (CMV) Vaccine in October. This virus poses a significant risk to pregnant mothers and recipients of donated organs, with the estimated potential market for this being at $ 5 billion a year.
Should You Buy MRNA Shares?
The valuations of the shares are in line with its most recent trading update, reaching a net income of $2.8 billion from revenues of $4.3 billion. Compared to this, last quarter the company incurred a loss of $117 million. This indicates that the shares have a P/E ratio of 20, which is good for a pharmaceutical company.
Many analysts of Moderna shares think they are overvalued. They believe that demand for the company’s only commercially approved product will start t decrease in the long term. This is an indication that its share price is heavily based on its other products like the HIV vaccine getting approval. MRNA shares could crash if this does not happen, which further adds to the impression that the shares are currently overvalued.
The shares have dropped by almost 40% which can be attributed to the company’s poor third-quarter results. After considering all the potential treatments and sales that Moderna has achieved, Wall Steet has estimated that the shares are worth $300 each. It thus seems that the market is not giving any account to Moderna’s growth potential and rather concentrating too much on its slowing growth. Considering this, investors can buy shares and add them to their portfolios as a growth investment. It could be an attractive time to snap up MRNA shares as a long-term investment at a discounted valuation, as the rest of the market is selling.
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