Moderna (NASDAQ:MRNA) was raised to Hold from Reduce at HSBC on Friday, with the firm raising the price target for the stock to $89 from $69 per share.

The investment bank’s analysts said that the downside they saw for the company has now played out.

“Having previously guided to 2023 revenue of USD6-8bn, Moderna’s management has put a softer tone on its 2023 revenue outlook, now expecting ‘at least USD6bn’ in its Q3 update. Moreover, the new USD4bn guidance for 2024 was a disappointment to the market (consensus at USD4.7-7.3bn,” the analysts said.

“Moderna also revisited its high R&D spending approach, introducing a more flexible R&D spending outlook in relation to 2025 revenue. Now aiming at break-even in 2026, Moderna’s medium-term growth trajectory implies that cost-cutting is on the way,” the analysts added.

The bank revised its estimates for Moderna and now believes the company’s current share price adequately reflects the current outlook.