Why Moderna Shares Are Rebounding From Friday's Losses

Moderna, Inc. MRNA shares have followed a downtrend ever since completing a double top formation in late September. After bottoming in early October, the stock reversed course and moved higher in anticipation of authorization for its COVID-19 booster shot.

U.S. Food and Drug Administration's Vaccines and Related Biological Products Advisory Committee recommended late Thursday that the FDA grant an emergency use authorization for a booster dose of its COVID-19 vaccine for a select high-risk population.

In a buy-the-rumor, sell-the-news move, the stock trended lower Friday after advancing 13% from the Oct. 7 low of $293.58. It settled Friday's session down 2.3% at $324.21.

Moderna is recouping the losses, trading up 4.11% at $337.52 midday Monday. 

The chief catalyst is an upgrade of its shares by CFRA from Hold to Buy with a $385 price target.

On Friday, Piper Sandler analyst Edward Tenthoff upgraded Moderna shares from Neutral to Overweight while maintaining the price target at $445. The analyst premised his upgrade on a recent stock retreat that he said has rendered the valuation attractive.

Separately, a Financial Times report, citing data from Airfinity, said Moderna, along with Pfizer, Inc. PFE-BioNTech BNTX, will generate $93.2 billion in combined COVID-19 vaccine sales in 2022, double the amount generated in 2021.

The two companies will likely control about 75% of the non-Chinese COVID19 vaccine market in 2022, the report said.

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