Moderna shares fall after Citigroup downgrade

Moderna Inc. shares experienced a significant decline following a downgrade by Citigroup, which moved the stock from ‘Neutral’ to ‘Sell’. The bank’s analyst, Geoff Meacham, suggested that the current valuation is overly optimistic, noting that a share price near $200 would require approximately $26 billion in annual oncology sales—a figure nearly seven times higher than Citi’s own forecasts.

Despite the downgrade, Citigroup raised its price target from $60 to $80, though this remains substantially lower than the recent trading highs. The stock's recent rally was largely driven by positive Phase 3 clinical trial results for intismeran, a personalized cancer vaccine developed in collaboration with Merck & Co. for melanoma patients.

In addition to the valuation concerns, Moderna faces legal challenges. A federal court in Delaware recently denied the company's request to dismiss a patent lawsuit involving mRNA technology, adding further pressure to the biotech firm.