Tashkent, Uzbekistan - December 7, 2020: Moderna and Pfizer Covid-19 vaccine trials. Japanese government rollout mass immunization against coronavirus
Moderna stock price has gone bonkers in the past few days. The shares rose to a high of $208.63, which was the highest level since January 13. MRNA has spiked by more than 72% from the lowest level this year, giving it a market cap of over $63 billion. Still, it has collapsed by over 60% from its all-time high.
Moderna share price has been in a slow recovery in the past few months even as the company’s revenue growth slows. It has jumped by over 70% from its lowest point in 2022, making it one of the best-performing Nasdaq 100 index.
With Covid-19 now behind us, investors have piled back into Moderna because of its broad pipeline. Investors believe that the company’s success in Covid means that it will broaden the application for the technology.
Moderna stock soared after the firm published encouraging data for its melanoma vaccine. In a statement, the firm said that the vaccine helped to prevent the disease from about 44% of the target sample. This is big news since it is the first time that a vaccine has helped to prevent a cancer type.
Still, analysts believe that investors could be getting ahead of themselves here. For one, it is still in early days and the vaccine has a long way to go. Speaking with CNBC, an analyst said that revenue from this vaccine could start by 2026.
A potential catalyst for the Moderna stock price is its strong pipeline of other MRNA vaccines. In intratumoral immuno-oncology, the company is in the first phase of testing. It will then go until the third testing phase. It has moved to the second phase of the localized regenerative therapeutics vaccine and propionic acidemia.
The company is also working on the inhaled pulmonary therapeutics vaccine for cystic fibroids. It has partnered with Vertex in its preclinical development.
Therefore, while Moderna’s revenue growth will be negligible as Covid ends, investors will likely focus on its undervaluation and its pipeline.
The daily chart shows that the MRNA stock price has formed a golden cross pattern. This pattern forms when the 200-day and 50-day moving averages make a crossover. It also moved slightly above the important resistance level at $197.41, where it struggled to move above in August. The Awesome Oscillator has moved above the neutral point.
Therefore, because of the golden cross and the triple bottom, I suspect that the shares will have a bullish breakout in the near term. If this happns, the stock will likely ris to about $250 before the momentum wanes.
This post was last modified on Dec 14, 2022, 04:30 GMT 04:30