Why Moderna Stock Is Up By 10% Today

Moderna Video 07.06.21.

Moderna Stock Rallies As Company Seeks Approval For The Use Of Its Vaccine In Teens

Shares of Moderna gained additional upside momentum and moved to new yearly highs after the company submitted applications to EU and Canada’s regulators for authorization of the expanded use of its COVID-19 vaccine in teens.

The company wants to file for an emergency use authorization in various countires for the use of its vaccine in people aged 12 to 17.

As vaccination process continues, the focus slowly shifts from high-risk groups to the rest of population in developed countries. Vaccination of teens aged 12 – 17 could be an important step to get back to normal during the next school year, so Moderna is about to enter another important market segment.

What’s Next For Moderna?

Analyst estimates for Moderna’s earnings continue to rise week after week. Currently, analysts expect that Moderna will report earnings of $25.31 per share in 2021 and $18.65 per share in 2022.

This means that the stock is trading at 12 forward P/E for 2022 despite the strong upside move that took the company’s shares from $105 at the start of this year to the current levels near $225.

Moderna remains cheaply valued by modern standards, but the discount could be explained by lack of earnings visibility. It is obvious that Moderna will have a great 2021. The next year also looks good, especially in case Moderna gets approval for the use of its vaccine in teens. Judging by recent trading action, the market believes that the company should have no problems on this front.

However, it’s hard to predict Moderna’s performance in 2023 – 2024 as it will depend on the development of the coronavirus pandemic and demand for vaccination. At this point, vaccination programs in less developed countries are progressing slowly, which means that demand for vaccines will remain strong in the next few years. Such demand will likely get financial support from international institutions as the world needs to eliminate the pandemic and destroy virus’ chances for new mutations. This scenario is bullish for Moderna shares.

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