Rothschild downgrades Moderna to sell, citing overvaluation after cancer vaccine rally

Rothschild & Co Redburn downgraded Moderna's stock to sell from neutral, citing that shares are "considerably overvalued" after a surge driven by positive cancer vaccine trial results. The firm raised its price target to $81 from $40, implying a 46% downside from Wednesday's close. Analyst Simon Baker acknowledged the melanoma vaccine data was "undoubtedly good" but said the market's "overexuberant reaction" is unjustified under any plausible scenario. Moderna's shares jumped 177% on Aug. 19 after positive late-stage trial results for the experimental vaccine developed with Merck, though the stock has since fallen 14% from that closing level. Rothschild noted the vaccine has not proven effective against other cancer types, yet the share price implies near-ubiquitous usage across tumor types. The downgrade contrasts with consensus, as two-thirds of 24 analysts covering Moderna rate it a hold, with only two recommending sell. Shares remain up 411% year to date.