Goldman Sachs downgraded MRNA to "neutral" and nearly halved its price target
Shares of Moderna Inc. (NASDAQ: MRNA) are down 3.2% in premarket trading after a bear note from Goldman Sachs. The firm lowered its rating on MRNA to "neutral" from "buy," and nearly halved its price target from $99 to $51, citing ongoing vaccine revenue challenges.
If these pre-market losses hold, Moderna stock could erase part of its 8.1% year-to-date lead and deepen its 57.1% year-over-year loss. The equity may also slip below a critical technical level -- its 20-day moving average -- which could pressure it toward its Jan. 13, nearly five-year low of $31.94.
Bearish sentiment is growing, as short interest in MRNA has surged 13.6% over the past two weeks. Currently, 43.01 million shares are sold short, making up 12.4% of the stock's total float.
It's worth noting the security has a history of exceeding volatility expectations, as evidenced by its elevated Schaeffer's Volatility Scorecard (SVS) rating of 99 out of 100. This makes now a good time to weigh in on the equity's next more with options.