Investment Overview
There have been several exiting investment themes in the year 2020. This includes cryptocurrencies and gold.
In the equity markets, the novel coronavirus pandemic has dictated the stock market trend and industry focus.
As an example, e-commerce stocks have surged with the pandemic resulting in a bigger shift in online shopping. Further, companies like Zoom Video Communication have benefited as official meetings go online.
Another sector that has been in focus through 2020 is the pharmaceutical sector. With the race for the vaccine for COVID-19, several big and small companies have been in the limelight.
One company that deserves mention and exposure is Moderna (NASDAQ:MRNA). The company’s stock has surged by 270% for year-to-date 2020.
I believe that the stock has more upside in 2021 and I wanted to discuss some positive triggers for MRNA stock.
Bullish Growth Triggers
Among the relative smaller companies in the race for the COVID1-19 vaccine, Moderna has made significant progress.
In August 2020, the company signed a deal with the U.S. government for an initial 100 million doses of mRNA vaccine against COVID-19.
Towards the end of August 2020, the company signed a deal with the European Commission to supply 80 million doses of the vaccine.
In October 2020, the company signed an agreement with Japan to supply 50 million doses of the mRNA vaccine.
Clearly, the company has a big backlog of orders once the vaccine is ready to hit the markets. This backlog will translate into revenue and cash flow growth.
In terms of progress, the company will begin Phase 3 trials in 2021. If the results are positive from Phase 3 trials, Moderna stock can surge higher.
Further, the signing of agreements with various governments is an indication of the point that the initial stages of the vaccine trial have delivered positive outcome.
The company has also received $1.1 billion in deposits from various orders related to the COVID-19 vaccine.
Of course, the COVID-19 vaccine is not the only growth trigger for the company.
Moderna has a deep pipeline of vaccines and drugs. In the coming years, this can translate into top-line and cash flow growth.
Conclusion
Moderna stock is in a phase of consolidation after a big rally. I believe that the stock is likely to move higher in 2021 as Phase 3 trials commence. Positive results from trials will be another stock upside catalyst.
Investors can consider some exposure to Moderna stock at current levels of $72. If the company is successful in delivering the vaccine for COVID-19, the stock can possibly double from current levels.