Moderna initiated with a Hold at Berenberg

Berenberg analyst Harry Gillis initiated coverage of Moderna (MRNA) with a Hold rating and $42 price target. The firm says mRNA will revolutionize the treatment of multiple diseases. However, the analyst prefers BioNTech (BNTX) for exposure relative to Moderna. Moderna is quickly spending its COVID cash and will not meet 2028 breakeven guidance, despite recent downgrades, the analyst tells investors in a research note. Berenberg says the company is more vulnerable to commercial pressure due to its high burn rate. This pressure will be amplified due to uncertainty surrounding the new U.S. administration, adds the firm.