On Thursday, Morderna Inc. (NASDAQ:MRNA) CEO told the Swiss newspaper Neue Zuercher Zeitung the coronavirus pandemic could be over in a year. Zeitung thinks increased vaccine production and the potential to vaccinate children could render the world free of the pandemic in a year’s time.
Moderna shares surged more than 3.5% as investors reacted to the statement. As a result, the stock is now up nearly 310% this year and 579% over the last 12 months, pushing its P/E ratio to 56.94.
Is Moderna stock still a buy?
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Since Moderna shares are up nearly 310% this year, some investors could be wondering whether the stock has room left to run. As a result, there are those that will be looking to cash out while the price is still high.
However, although Moderna CEO seems optimistic about the chances of ridding the world of the pandemic in a year’s time, there are a lot of people still left to vaccinate. The next breakout will come from Covid vaccine approvals for use on children aged below 12 years.
Therefore, covid-19 vaccine makers could witness another spike in vaccine shipments with more people now willing to be vaccinated and children’s doses potentially on the horizon.
How long can the Moderna rally continue?
Technically, Moderna shares seem to be trading under significant bullish bias in the market sentiment. However, the stock is yet to fully recover from the sharp pullback it suffered at the start of August.
Therefore, with the stock price yet to hit the overbought conditions of the 14-day RSI, investors can target extended gains at approximately $84.77 or higher at $518.10.
On the other hand, if the share price runs out of steam triggering a pullback, it could find support at $425.90 or lower at $389.90.
Bottom line: there is room left to run for Moderna shares?
In summary, although Moderna shares have gained significantly following the development of the company’s covid-19 vaccine, the stock recently pulled back to create another opportunity for investors to buy the stock.
Therefore, with the share price still on an upward trajectory, and yet to reach overbought conditions, it may not be too late to buy MRNA shares.
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