Why Moderna Stock Dropped Today
Shares of Moderna (NASDAQ: MRNA) declined sharply on Thursday and ended the trading session down by 9.6%, despite the company not reporting any news. The catalyst for the biotech's losses on the market today may have been negative comments from an analyst.
In a note issued Wednesday evening, SVB Leerink analyst Mani Foroohar initiated coverage on Moderna's stock with a market perform (or "hold") rating. The analyst also gave the stock a $65 price target. Note that even after today's decline, Moderna's shares are worth $75.33 apiece. Foroohar believes that Moderna's experimental vaccine for COVID-19, mRNA-1273, has good chances of earning regulatory approval.
Further, the analyst sees Moderna attracting a lot of patients with its vaccine in the early days after it is launched. Despite these potential upsides, Foroohar thinks Moderna's stock is currently overvalued and sees its current levels as an "unattractive risk/reward to investors following torrid performance year-to-date."
Source Fool.com
