Moderna Inc <\/strong>(NASDAQ: MRN<\/a>) shares are surging above the $70 level for the first time since late May following sell-side commentary on its coronavirus vaccine program.<\/p>\n The Moderna Analyst: <\/strong> Jefferies analyst Michael Yee<\/a> initiated coverage of Moderna with a Buy rating and $90 price target.<\/p>\n The Moderna Thesis: <\/strong> There is good probability the vaccine<\/a>\u00a0will work and get at least emergency approval by early 2021,\u00a0Yee said in a\u00a0note, citing his discussions with key opinion leaders and disclosures made by the company thus far.<\/p>\n Given the likelihood of demand to remain elevated in the first two years, the analyst estimates billions in sales. This is despite the sell-side remaining divided over whether Moderna will be successful in its pursuit for a coronavirus vaccine, he added.<\/p>\n Benzinga is covering every angle of how the coronavirus affects the financial world.\u00a0For daily updates,\u00a0sign up for our coronavirus newsletter<\/a>.<\/strong><\/em><\/p>\n Key catalysts for the stock <\/strong>are the Phase 2 readout<\/a> due in fall and potential interim Phase 3 readout by the end of the year, Yee said.<\/p>\n Jefferies’ $90 per share price target gives Moderna a valuation of $35 billion. This is based $15 billion valuation for the stock, based on three-to-four times sales, and $15 billion to $20 billion platform value, which is supported by a pipeline consisting of 15 other candidates in the clinic, including 5-10 vaccines and 5-19 other therapeutic programs.<\/p>\n “$35B on MRNA if it does have a novel mRNA platform that generated a COVID vaccine in less than a year would be worthy of praise, in our view,” Yee wrote in the note.<\/p>\n As such, the firm believes the vaccine will get approved and could do over $5 billion in orders over the next few years and the stock will head higher.<\/p>\n MRNA Price Action:<\/strong> Moderna shares were soaring 16.8% to $73.14\u00a0at the time of publication.<\/p>\n \n View More Analyst Ratings for MRNA<\/a> \u00a9 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.<\/i><\/p>\nLatest Ratings for MRNA<\/h3>\n
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\n \nDate<\/th>\n Firm<\/th>\n Action<\/th>\n From<\/th>\n To<\/th>\n<\/tr>\n<\/thead>\n \n Jul 2020<\/td>\n Brookline Capital<\/td>\n Initiates Coverage On<\/td>\n <\/td>\n Buy<\/td>\n<\/tr>\n \n Jul 2020<\/td>\n Jefferies<\/td>\n Initiates Coverage On<\/td>\n <\/td>\n Buy<\/td>\n<\/tr>\n \n Jun 2020<\/td>\n Barclays<\/td>\n Initiates Coverage On<\/td>\n <\/td>\n Overweight<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
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