Here’s why JPMorgan just downgraded Moderna stock, despite COVID vaccine mania – Serialpressit (News)

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JPMorgan has downgraded shares in COVID-19 vaccine maker Moderna’s stock over valuation concerns.

The drop is from overweight to neutral.

What has the analysts there nervous is Moderna has a $37 billion market cap, even though there are many unknowns about the pandemic and the vaccine, such as how long it’ll last, what the pricing will be, and how competitors will fare.

“We remain bullish on Moderna’s long-term outlook, disruptive platform (in the vaccine space and otherwise), and chances of being one of the first companies to bring a COVID-19 vaccine to market,” they wrote in their equity research note today. Momentum from the mRNA-1273 vaccine “could certainly drive Moderna even higher, but we’re simply unable to continue to fundamentally justify it.”

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The worldwide race to create a vaccine is huge. More than 100 companies are working on one, including heavy hitters such as Pfizer, Johnson & Johnson, GlaxoSmithKline, and AstraZeneca.

Moderna has been a Wall Street darling. The Cambridge, Massachusetts-based company’s shares are up 385% since the start of the year.

Its Phase III trial with 30,000 people is expected to start on July 27.

Moderna stock is $87.44, down $7.41 or 7.81%, in midmorning trading.

The post Here’s why JPMorgan just downgraded Moderna stock, despite COVID vaccine mania appeared first on Fast Company.

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