Moderna and Revolution Medicines have upcoming catalysts that could help sustain their gains, even as biotech stocks retreat.
Profit taking is hitting one of biotech's hottest trades, and the selling is landing heaviest on the stock that ran the furthest. Moderna (NASDAQ:MRNA | MRNA Price Prediction) stock is down 10% to $214.
Moderna has staged a dramatic rebound, becoming the best-performing S&P 500 stock YTD, driven by pipeline optimism and strong technical momentum. I maintain a "Hold" rating on MRNA due to persistent unprofitability, negative free cash flow, and a valuation highly dependent on pipeline execution. Key catalysts include upcoming Q3 earnings on November 6 and Analyst Day on November 12, with high implied volatility and significant event-driven price risk.
Healthcare is drawing fresh buying as money moves away from the market's popular technology trade, and one messenger RNA (mRNA) name is pulling well ahead of the pack. Moderna (NASDAQ:MRNA | MRNA Price Prediction) shares are up 6% to $239.
Moderna has surged more than 650% this year on cancer vaccine excitement, but analyst targets sit far below the current share price. Before you chase the rally, there are some uncomfortable numbers you need to see first.
Shares of Moderna MRNA have gained more than 5% over the past week, adding roughly $4.2 billion in market value.
In the closing of the recent trading day, Moderna (MRNA) stood at $213.63, denoting a -5.05% move from the preceding trading day.
Moderna (NASDAQ:MRNA | MRNA Price Prediction) stock trades at $207.80, up 5%, after its addition to the NASDAQ 100 took effect.
Arbutus Biopharma is rated Buy, leveraging a $179.1M Moderna settlement and a 46M share buyback to enhance per-share value. Imdusiran, ABUS's RNAi asset for chronic hepatitis B, targets a functional cure and could generate $1.59–$2.39B in peak annual revenue if successful. Current valuation ($4.50/share) slightly exceeds risk-adjusted fair value ($3.91), with upside tied to positive Phase 2b/3 Imdusiran results.
MRNA's Nasdaq-100 entry follows a 566% stock surge and stronger cancer therapy prospects, potentially boosting demand from index-tracking funds.
The healthcare sector stood out as one of the few bright spots in Wednesday's trading.
Few large biotech stocks have rewarded patience like Moderna (NASDAQ:MRNA | MRNA Price Prediction), and the size of that run now raises a hard question about what comes next. Moderna stock is up 545% year-to-date to $190.