Investing.com — Argus downgraded Moderna Inc (BMV:) (NASDAQ:) to “hold” from “buy,” on declining sales of its COVID-19 vaccine and limited near-term growth prospects.
The brokerage noted that while Moderna’s COVID-19 vaccine was a strong performer during the pandemic, sales have dropped as the virus entered a new phase.
Its RSV vaccine, despite offering robust protection, faces challenges from being approved more than a year after competing products.
“RSV vaccine provides robust protection against this virus, the product was approved more than a year after two other competing products, limiting its sales as doctors had already become accustomed to some of these other options,” analyst said.
Argus highlighted Moderna’s extensive pipeline of 36 mRNA development candidates across 45 programs but said these require significant investment and time to reach the market.
An upgrade would hinge on Moderna returning to earnings growth and securing more approvals for its product candidates, Argus added.
The firm maintained its five-year “buy” rating, reflecting optimism about the company’s long-term potential.
“We would consider an upgrade when the company is able to return to a period of earnings growth and when it has more of its product candidates approved and sold on the market,” analyst wrote.
