01:27 PM EDT, 09/13/2024 (MT Newswires) -- Moderna ( MRNA ) faces short-erm "material headwinds" for respiratory syncytial virus and COVID vaccines, while prospects for a cancer vaccine and the mRNA platform look bullish in the long term, RBC Capital Markets said Thursday in a report.

On Thursday, Moderna ( MRNA ) said it is reducing annual R&D spending by $1.1 billion starting in 2027 in light of "recent commercial challenges." Revenue guidance for 2025 was put at $2.5 billion to $3.5 billion with analysts polled by Capital IQ expecting $3.95 billion.

Pfizer ( PFE ) and GSK (GSK) "may be in a better competitive position given they can bundle RSV with other approved drugs," and Moderna ( MRNA ) disclosed new hurdles for COVID, including increasing competition, RBC said.

Moderna's ( MRNA ) pipeline has also experienced setbacks with plans to file for approval of a standalone flu vaccine being abandoned, RBC said.

"Overall, we remain believers in cancer vaccine and what the broader platform can do long term, but with multiple short-term headwinds (including COVID vaccination rates likely to continue to decline and RSV taking time to ramp), we do remain sector perform" on Moderna ( MRNA ), RBC said.

RBC lowered its price target on the stock to $75 from $90.

Moderna ( MRNA ) shares fell 3.4% in recent Friday trading. Pfizer ( PFE ) and GSK both eased 0.1%.

Price: 67.31, Change: -2.37, Percent Change: -3.40