Moderna’s investments in pipeline lead to P&L uncertainty: Bank of America

Despite clinical progress, Moderna (NASDAQ:MRNA) has caused P&L uncertainty given its strategy of investing in the pipeline, Bank of America said after the COVID-19 vaccine maker conducted its fourth annual vaccine day on Tuesday.

While the company announced the addition of a bacterial vaccine candidate for Lyme disease and a messenger-RNA-based shot against norovirus at the event, MRNA shares lost ~3% after failing to declare early success in its late-stage study for flu vaccine candidate mRNA-1010.

"….while we acknowledge the unmet need / potential commercial opportunities, Moderna's strategy of investing in its pipeline has led to P&L uncertainty," BofA analyst Geoff Meacham wrote, reiterating the Neutral rating and $200 per share target on the stock.

Meacham doubts Moderna's (MRNA) aim to launch six major vaccine products over the next few years and generate $8B – $15B respiratory product sales in 2027.

"However, we and the Street suspect this guidance may be a high bar, especially with concerns over COVID-19 revenue durability," the analyst added.

While Wall Street analysts continue to rate MRNA as a Buy, their bullishness on the stock has slipped over the past three years.

However, Seeking Alpha analyst Douglas McKenny argues that due to investments, Moderna (MRNA) is in a solid position to deliver new products that can sustain its profitability.