Moderna's (MRNA) spectacular rise shows no sign of ending for two reasons. First, market participants are always keen on piling on to the next hottest thing. Moderna's search for COVID-19 vaccine gives the market something to invest in. Second is the company's strong quarterly results. Both positive catalysts suggest that I will need to raise my price target on Moderna stock.
Moderna posted earnings per share of negative 37 cents, beating consensus by 5 cents. Though the company appeared to look foolish to the markets in selling its stock at a 15% discount,