Moderna (MRNA) continues to target cash breakeven in 2028, banking on its ongoing cost reductions and revenue growth from geographic expansion and new product launches, Morgan Stanley said in a Friday note.

Moderna announced incremental 2025 cost savings, with cost of goods sold and research and development expenses estimates to be reduced by $350 million each at the mid-point, reflecting "continued acceleration of its cost-cutting initiatives," Morgan Stanley said.

With Moderna narrowing its 2025 revenue guidance to $1.6 billion to $2 billion from $1.5 billion to $2.2 billion previously, which compares with Morgan Stanley and consensus estimates of $1.8 billion and $1.84 billion, analysts said that guidance tweak "reflects a $50 million reduction at the midpoint, primarily reflecting increased visibility on vaccine sales."

Morgan Stanley further noted that Moderna continues to pursue strategic partnerships to advance select late-stage programs, with the company's management indicating that it is in discussions with large pharmaceuticals and financial sponsors to evaluate potential partnership opportunities.

The firm maintained its equalweight rating on Moderna but adjusted its price target to $30 from $32.

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