Moderna stock soared 5.35% in pre-market trading on Monday, following a significant announcement from the U.S. Food and Drug Administration (FDA). The regulatory body has approved Moderna's next-generation Covid-19 vaccine for adults aged 65 or older, marking a crucial milestone for the biotechnology company.

The FDA's decision to greenlight Moderna's updated Covid vaccine for the elderly population underscores the continued importance of coronavirus protection, particularly for vulnerable age groups. This approval could potentially boost Moderna's revenue streams and market position in the ongoing fight against Covid-19 variants. The company's ability to adapt its vaccine technology to address evolving health challenges appears to have resonated positively with investors.

Despite the pre-market rally, it's worth noting that analyst sentiment remains cautious. Barclays analyst Gena Wang recently maintained a Hold rating on Moderna with a price target of $40.00. This suggests that while the FDA approval is a positive development, broader market factors and the company's overall performance continue to influence expert opinions. Investors will likely be watching closely to see if this pre-market momentum translates into sustained gains during regular trading hours.