Shares of Moderna Inc (NASDAQ: MRNA) are down more than 15% since Thursday when Merck said its oral COVID-19 pill reduces the risk of hospitalization and death by 50%. But Short Hills Capital Partners’ Stephen Weiss is convinced the sell-off is only transitory.
Weiss’ remarks on CNBC’s “Halftime Report”
Weiss continues to see the dip as a “buying opportunity” and added to his position this morning. On CNBC’s “Halftime Report”, he said:
The Merck therapeutic is not a substitute for preventative. Furthermore, Merck is only 50% effective, and we don’t know what the side effects are. It makes no sense to say I won’t take the vaccine because I’m getting a 50% better chance of not being hospitalized or dying by taking this pill.
Last month, Moderna CEO Stephane Bancel said the global pandemic could be over in a year.
EU approved Pfizer and Moderna boosters
The European Medicines Agency approved Pfizer and Moderna booster shots for immunocompromised people on Monday to be taken 28 days after the second shot that Weiss sees as a major positive for Moderna. He added:
It’s not just a COVID company. It’s still the cheapest stock I own based on the COVID revenues. You will need a booster going forward, that’s clear. So, to sell it based on this news when the stock is trading at a ridiculous multiple of seven times with their platform that’s more than double the last couple years, speaks to the market, not to Modera.
So, based on fundamentals, Weiss said he was happy with his stake in Moderna that represents his largest position ever.
The post Moderna price forecast: Stephen Weiss sees upside appeared first on Invezz.
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