Moderna vaccine stock added to the Nasdaq 100!

July 15, 2020 13:00

Moderna vaccine stocks

Shares in coronavirus vaccine leader Moderna ( MRNA) have surged higher on the news that the company will be added to the Nasdaq 100 index this month. At one point its share price was up as much as 19% to $74.45, helped by a bullish analyst upgrade from investment bank Jefferies.

According to a press release from Nasdaq, Moderna will replace CoStar Group which will leave the coveted Nasdaq 100 index due to a reclassification based on the Industry Classification Benchmark (ICB) which is the globalised standard for the categorisation and comparison of companies by sector and industry.

Jefferies also announced a 'buy' rating on the stock with a $90 price target which represents more than 45% upside from the stock closed last Friday. Michael Yee, Jefferies' equity analyst wrote in a note to clients: "We think there is a good probability Moderna's vaccine will work and get at least emergency use authorization in 2021" and that, "we think a viable vaccine can generate billions in sales, which we see as reasonable given there would be high demand over the first 1-2 years."

While there are many different pharmaceutical companies and biotech companies in the race to find a coronavirus vaccine, Moderna announced positive results from its early-stage human trials. The company said the potential vaccine for Covid-19 produced a "robust" immune response in all of its 45 patients tested.

Global stock indices and risk assets have also been lifted on the back of this optimism. Below is the long-term, weekly price chart of Moderna's share price, available via Admiral Markets on the MetaTrader 5 trading platform.

Moderna weekly price chart

Source: Admiral Markets MetaTrader 5, #MRNA, Weekly - Data range: from 2 December 2018 to 15 July 2020. Please note: Past performance is not a reliable indicator of future results. Five-year data is not available for Moderna's share price as the stock only became public in 2018, the beginning of the chart above.

Did you know that you can download the Trading Central Technical Ideas indicator completely FREE by upgrading your MetaTrader 5 trading platform provided by Admiral Markets UK Ltd to the Supreme Edition?

This indicator provides you with actionable trading ideas and technical analysis on a wide range of asset classes. To get it free, just click on the banner below and download it today:

Download MetaTrader 5 Supreme Edition

INFORMATION ABOUT ANALYTICAL MATERIALS:

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter "Analysis") published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:

1.This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

2.Any investment decision is made by each client alone whereas Admiral Markets UK Ltd (Admiral Markets) shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.

3.With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.

4.The Analysis is prepared by an independent analyst Jitan Solanki, Freelance Contributor (hereinafter "Author") based on personal estimations.

5.Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.

6.Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.

7.Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.

Avatar-Admirals
Admirals
An all-in-one solution for spending, investing, and managing your money

More than a broker, Admirals is a financial hub, offering a wide range of financial products and services. We make it possible to approach personal finance through an all-in-one solution for investing, spending, and managing money.