Rothschild & Co Redburn Downgrades Moderna To Sell, Calls Shares Considerably Overvalued

According to CNBC, Rothschild & Co Redburn downgraded Moderna to sell from neutral and raised its price target to $81 from $40, which still implies 46% downside from Wednesday's close. Analyst Simon Baker said Moderna's recent melanoma cancer vaccine data was good, but the stock's reaction was excessive and left shares considerably overvalued in the firm's view. Moderna said on Aug. 19 that its experimental melanoma vaccine, developed with Merck, produced positive results in a late-stage trial, sending the stock up 177% that day. The shares later closed Wednesday 14% below their Aug. 19 closing level and were up 411% year to date, though they fell nearly 2% in premarket trading after the downgrade. LSEG data showed that of the 24 analysts covering Moderna, two-thirds rate the stock hold and two rate it sell.