Strong second-quarter results from Moderna make now an opportune time to buy shares of the biotechnology company, Deutsche Bank said. Analyst Emmanuel Papadakis upgraded shares of the Covid-19 vaccine maker to buy, citing quarterly numbers that beat analyst expectations . Papadakis also pointed to additional contracts unaccounted for in the company’s previous guidance and a recently announced $3 billion share buyback program. While the valuation support is currently “more robust” for BioNTech , Papadakis expects Moderna’s multiple to expand at a similar pace moving into 2023 and 2024. “MRNA has been more forthright with its buyback programme; plus has greater near-term optionality on the infectious disease side,” he wrote. Future updates related to Moderna’s oncology and rare disease vaccines, plus efforts on a combination option for Covid-19, flu and respiratory syncytial virus could also serve as positives in the near term, helping the company build on its booster franchise, according to Papadakis. The bank slapped a $165 price target on the stock, which implies shares could rally more than 22% from Wednesday’s close. Shares have slumped about 47% this year. “To be clear this is not without risk: if upcoming catalysts disappoint and COVID revenues continue to collapse in FY23 as is expected, valuation will likely compress closer toward MRNA’s cash pile than is presently the case: the key remains convincing validation of the platform beyond COVID,” he wrote. — CNBC’s Michael Bloom contributed reporting
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