Moderna (NASDAQ:MRNA) stock is up more than 20% in just the past five trading sessions as investors foresee strong growth opportunities for the biotechnology firm. Indeed, the company has climbed 44% so far this year as one of the big winners of 2024’s bull market.
What’s pushing MRNA stock up lately?
Well, it appears the company is benefitting primarily from three main drivers:
- Avian virus. Vaccine stocks have been on the climb this week amid reports of new human bird-flu cases in both the U.S. and Australia. Indeed, MRNA stock jumped 13% Wednesday after the avian virus was found in a Michigan dairy-farm worker. This marks the second human bird-flu case of the year, following up a similar case reported in Texas back in April.
- Concerns of a summer Covid-19 spike. There is some early speculation that the new “FLiRT” variants — the KP1 and KP2 strains — could cause a surge in the virus. Indeed, KP2 is now the most common strain of Covid found in the States. This has boosted companies which could offer a potential booster vaccine, including Moderna.
- AI potential. Moderna has also grabbed headlines recently for its foray into the world of artificial intelligence. While the company isn’t exactly new to AI — which it has used for research purposes — Moderna has continued to take steps toward bolstering its AI-fueled growth. Just weeks ago, Moderna said it had “expanded its collaboration” with OpenAI as a means of furthering the drug discovery process.
MRNA Stock Climbs Despite Mixed Analyst Ratings
While Moderna has plenty of potential growth avenues, some believe MRNA stock may be slightly overvalued at its current price. Indeed, Evercore ISI analyst Cory Kasimov maintained an “in line” rating last week with a price target of $120. This implies roughly 25% downside from the stock’s current price of $162 per share.
Not for nothing, Moderna’s vaccine sales have fallen sharply since the peak of the Covid-19 pandemic. Whether the company can find new avenues for growth remains to be seen.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
