BioNTech started at buy, Moderna at hold by Berenberg

Berenberg has initiated coverage of BioNTech (NASDAQ:BNTX) and Moderna (NASDAQ:MRNA), citing their leadership positions in mRNA medicine.

The investment firm started BioNTech (BNTX) with a buy rating and price target of $130.

Berenberg noted that BioNTech (BNTX) shares trade below the value of its cash position and COVID-19 business, adding that the company possesses a “very strong” balance sheet that “provides substantial firepower to execute development of its most promising assets.”

The firm also said it sees upcoming oncology data readouts driving “positive momentum” through 2025.

“Now is an excellent opportunity to buy BioNTech (BNTX) as investor attention will continue to shift to the innovative cancer pipeline, and share price weakness on U.S. political uncertainty appears overdone,” it added.

Berenberg started Moderna (MRNA) at hold with a price target of $42 due to its “high cash burn and poor visibility.”

The firm believes Moderna (MRNA) will have a hard time meeting its medium-term break-even guidance due to commercial pressure on its respiratory vaccines business and high R&D spending.

Berenberg added it sees Moderna (MRNA) likely making additional downgrades to its near and medium-term expectations and that “headwinds will continue to weigh on shares.”