Buffet Radar: Buy Moderna (MRNA)
Early in the pandemic, investors staked their money on Moderna's $MRNA coronavirus vaccine. And their bet paid off in 2020; the stock increased by more than 400%. Moderna shares, however, have lost their appeal this year. Future revenue worries are causing investors to be concerned, and a nearly 10% drop YTD.
Sales of the coronavirus vaccine are unlikely to reach the $18 billion levels seen this year or last year. However, Moderna has provided information regarding the post-pandemic market and that vaccination may eventually prove profitable for the business.
It's crucial to keep in mind that Moderna is a corporation that offers more than only coronavirus vaccines. The company is now conducting phase 3 trials on three non-coronavirus candidates, including experimental influenza, respiratory syncytial virus (RSV), and CMV vaccines. Each one represents a huge chance.
Moderna could soon release these items if phase 3 goes as planned. According to the business, the candidates for the flu and RSV may go on sale within the next two to three years.
The future of Moderna hinges on these potential outcomes, as well as the coronavirus vaccine, in a radically new market environment. Thus it is less helpful to look at conventional valuation methods.
However, if the coronavirus vaccine or booster can continue to be a blockbuster and Moderna releases at least one more blockbuster in the ensuing two years, the company will appear undervalued.
