5 Most Undervalued Pharma Stocks To Buy According To Hedge Funds

3. Moderna, Inc. (NASDAQ:MRNA)

Number of Hedge Fund Holders: 44

P/E Ratio as of January 23: 6.86

Moderna, Inc. (NASDAQ:MRNA) is a Massachusetts-based biotechnology company, discovers, develops, and commercializes messenger RNA therapeutics and vaccines for the treatment of infectious diseases, immuno-oncology, rare diseases, cardiovascular diseases, and auto-immune diseases. It is one of the most undervalued stocks in the pharma sector as per hedge funds. 

On January 18, Chardan analyst Geulah Livshits raised the price target on Moderna, Inc. (NASDAQ:MRNA) to $208 from $191 and maintained a Neutral rating on the shares after the company announced its respiratory syncytial virus vaccine mRNA-1345 has met core efficacy endpoints in an interim analysis of the phase III ConquerRSV trial in older adults. Moderna, Inc. (NASDAQ:MRNA) plans to submit for regulatory approval in the first half of 2023, as well as to present the data at “an upcoming scientific meeting” and submit the data for peer-reviewed publication, the analyst told investors.

According to Insider Monkey’s data, 44 hedge funds were long Moderna, Inc. (NASDAQ:MRNA) at the end of Q3 2022, compared to 45 funds in the prior quarter. Patrick Degorce’s Theleme Partners is the largest stakeholder of the company, with 6 million shares worth $710 million. 

Here is what Baron Funds said about Moderna, Inc. (NASDAQ:MRNA) in its Q3 2022 investor letter:

“Within biotechnology, underperformance of Moderna, Inc. (NASDAQ:MRNA) and lower exposure to this better performing sub-industry weighed the most on relative performance. Shares of Moderna, a leader in the emerging field of mRNA-based vaccines and therapeutics, declined due to increasing uncertainty around what a booster market could look like as COVID shifts away from pandemic status and becomes an increasingly commercial market rather than government funded.”