Moderna Stock Up 2x Last Month, But Still Looks Like Good Value

Moderna Stock Up 2x Last Month, But Still Looks Like Good Value

UKRAINE - 2020/11/24: In this photo illustration a medical syringe and a vial depicting fake ... [+] coronavirus vaccine seen in front of the Moderna US biotechnology company logo. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)



SOPA Images/LightRocket via Getty Images

Moderna (NASDAQ: MRNA) published final results from its 30,000-person phase 3 trial of its Covid-19 vaccine and indicated that it would apply for emergency use authorization with the U.S. FDA. The vaccine was over 94% effective in preventing Covid-19 and 100% effective in preventing severe cases of infection – meaning that no one who received the vaccine developed a serve case of the infection. Investors cheered the news, sending Moderna stock up by about 20% on Monday's trading. The stock has more than doubled over the last month as the company began publishing efficacy data. Is this jump warranted? We think it largely is, but there are some risks as well.

Moderna's Covid-19 vaccine could emerge as the most sought-after vaccine, particularly in developed markets – considering the high levels of efficacy as well as manageable refrigeration requirements, unlike Pfizer's candidate which is also highly effective but needs to be stored at ultra-cold temperatures. The