Moderna Shares Rise as Analysts Are Positive Heading Into 2023

Moderna (NASDAQ: MRNA) shares have gained more than 2% in early Monday trading after Jefferies upgraded the stock to Buy from Hold, raising the price target to $275 from $170 per share.

Despite declining more than 21% this year, Moderna's stock price has rallied in the last three months.

Jefferies analyst Michael Yee told investors in a note that the shares can rebound in 2023 due to the company's pipeline opportunities, and he feels Moderna is the “new shiny thing” in personalized cancer vaccine after recent positive Phase 2 data.

Furthermore, the analyst is optimistic about the drugmaker's upcoming Phase 3 data on respiratory syncytial virus and data for its orphan disease franchise later in 2023.

Elsewhere, Morgan Stanley analyst Matthew Harrison raised the firm's price target on Moderna to $209 from $170 on Friday, maintaining an Equal Weight rating on the stock.

The analyst has raised his melanoma odds of success forecast to 80% from 60% after a recent report of “positive” Phase 2 data by Moderna and partner Merck. In addition, he has increased his views on the odds of success across the other PCV opportunities that he models.

Harrison sees the US and EU adjuvant market as potentially about $30 billion or more in size and expects Merck and Moderna to begin various Phase 3 PCV studies in 2023.

According to TipRanks, out of 14 analysts, seven have a Buy rating on Moderna, with the other seven assigning the stock a Hold rating. In addition, the average price target is $219.58, representing a potential 13.65 upside.