Shares of Moderna, Inc. (MRNA) surged 7.35% during Tuesday's trading session, outperforming the broader market. The biotechnology company's stock rally was fueled by better-than-expected COVID-19 vaccine sales in the third quarter and management's confidence in meeting full-year 2025 guidance.

Moderna's impressive performance can be attributed to its operational efficiencies, which have significantly reduced costs. The company is now positioned to exceed its 2025 cost reduction targets by approximately $1 billion on a GAAP basis. Despite lower vaccination rates, Moderna's management remains optimistic about achieving their financial goals for the year.

Investment firm UBS has maintained a buy rating on Moderna with a price target of $40, citing the company's undervalued oncology franchise as a potential growth driver. Key data readouts expected in 2026 for Moderna's melanoma and renal cell carcinoma vaccines could provide further upside. However, investors should be aware of risks such as lower COVID-19 vaccine uptake, increased competition, and potential clinical pipeline setbacks.