Jefferies says market nears short term “peak RFK negativity", Vaccine makers up

Investing.com -- Shares of Moderna Inc (BMV:MRNA ) (NASDAQ:MRNA ) were up roughly 7% at $41, while those of Pfizer Inc (NYSE:PFE )were up nearly 2%.Jefferies analysts said Investor sentiment around Moderna Inc could be nearing a short-term low, amid recent concerns tied to vaccine transparency and structural issues might start to ease.

The analysts referred to fears surrounding Robert F. Kennedy Jr.’s presidential bid—particularly over vaccine-related rhetoric—may have heightened market anxiety.

However, they see a potential bounce in Moderna’s stock, with Kennedy unlikely to pursue drastic measures against vaccines and transparency efforts possibly benefiting the company in the long term.

So far this year, Moderna stock has lost nearly 60% value.

Moderna continues to face structural challenges, including high operating expenses, risks around flu/COVID-19 combo vaccine approvals, and limited visibility on profitability through 2028. Yet, upcoming catalysts could provide upside.

Key milestones include data from the company’s Phase III cancer vaccine study in adjuvant melanoma expected in the second half of 2025, as well as interim results from its CMV vaccine trial, which could arrive later this year or early 2025. Moderna also plans to file for approval of its flu/COVID-19 combo vaccine by year-end, with potential revenue beginning in the 2026-2027 vaccine season.

Despite industry-wide concerns over FDA policy and vaccine adoption, Jefferies highlighted Moderna's expectations for a $2-3 billion durable annual COVID-19 vaccine business. The analysts maintained a cautious outlook on profitability but acknowledged potential for stock movement ahead of key data releases and broader market shifts in sentiment.

Source: Investing.com