Moderna Inc (NASDAQ:MRNA) shares are trading lower Wednesday after Goldman Sachs downgraded the stock. Here’s what you need to know.

What To Know: Goldman Sachs analyst Salveen Richter downgraded Moderna from Buy to Neutral on Wednesday and lowered the price target from $99 to $51, citing lower conviction following another product revenue guidance adjustment.

Moderna’s most recent product revenue guidance is the second downward revision over the past six months, according to Richter.

“Which while potentially at an achievable level, leads us to believe MRNA has limited visibility on the revenue stream for the respiratory vaccine business,” the analyst said.

Richter now expects Moderna to report product revenue at the low end of its guidance range of $1.5 billion to $2.5 billion. The analyst cited several reasons for his cautiousness including potential additional competitive pressure in the COVID vaccine market, a potential reduction in vaccination rates and uncertainty around re-vaccination recommendations.

The Goldman analyst also adjusted his forecasted probability of success for multiple vaccines including the company’s cytomegalovirus (CMV) vaccine, which did not meet the criteria for early efficacy in a Phase 3 trial. The study is continuing and Moderna anticipates final efficacy data later this year.

See Also: Teva Pharmaceutical Stock Falls On Q4 Earnings: What’s Going On?

Richter lowered the probability of success for the company’s CMV vaccine from 90% to 80%. The analyst also lowered the probability of success for the company’s EBV vaccine from 85% to 70%.

The firm’s 12-month price target is based on a 100% discounted cash flow value of $51.

Moderna on Wednesday scheduled its fourth-quarter financial results for Feb. 14. Analysts currently expect the company to report a loss of $2.75 per share and revenue of $986.03 million, per Benzinga Pro.

MRNA Price Action: Moderna shares were down 8.21% at $41.25 at the time of publication Wednesday, according to Benzinga Pro.

Photo: Shutterstock.