Moderna shares wilts on HSBC downgrade
Moderna, all-sessions, falls almost 2% after HSBC downgraded stock to "reduce" rating from "hold". IGTV financial analyst Angeline Ong looks at what’s behind the stock reaction.
(AI Video Summary)
Moderna share price dips on HSBC downgrade
Moderna's stock has taken a slight dip of 1.8% on the IG trading platform. This drop in stock value is a result of HSBC, a financial institution, giving Moderna a lower rating and predicting a decrease in price. However, it's worth noting that HSBC did raise the price target, which is the expected value of the stock, although it remains lower than the current market value. In simpler terms, this means that HSBC believes Moderna's stock will likely decrease in value by about 10.8% compared to last year.
Reason for the downgrade
The reason behind HSBC's downgrade is their scepticism about Moderna's RSV vaccine, which is used to combat a respiratory virus. Analysts are concerned about Moderna's vaccine not being as effective as those made by its competitors like GlaxoSmithKline (GSK) and Pfizer. The market is paying close attention to these concerns as it indicates a lack of confidence in Moderna's RSV vaccine.
Many analysts have expressed doubts about the long-term effectiveness of Moderna's experimental RSV vaccines, and HSBC's downgrade has only increased these worries. As a result, Moderna's stock price has dropped. This decline in value has raised concerns about Moderna's ability to compete with other companies in the same industry.
In summary, Moderna's stock has fallen because HSBC gave it a lower rating and expressed doubts about the effectiveness of its RSV vaccine. This has raised concerns about the company's position in the market compared to its competitors.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
