A traders look at Moderna, Pfizer, BioNtech, Johnson & Johnson and Aspen
As the prospect of a COVID-19 vaccine nears, we look at some of the news relating to key listed shares as well as their price charts, broker ratings and client sentiment.
The companies covered include:
- Pfizer Inc. (PFE)
- BioNtech (BNTX)
- Moderna Inc. (MRNA)
- Johnson & Johnson (JNJ)
- Aspen Pharmacare (APN)
Vaccine related shares – Broker ratings and client views
The below table highlights how Pfixer Inc., BioNtech, Moderna Inc., Johnson & Johnson and Aspen Pharmacare are currently viewed on both an institutional (analyst) and retail (trader) level.
The table highlights current analyst ratings (as polled by Thomson Reuters), as well as how IG clients who are trading these counters are placed at the time of writing.
The Thomson Reuters analyst ratings and IG Client sentiment are features available on IG’s trading platform. The ratings and sentiment indicators are snapshots of these views on the respective shares as of the 16th of November 2020.
| Company | Average broker rating | No. of brokers | IG client sentiment | No of clients |
| Pfizer Inc. | Hold | 19 | 98% long | 500+ |
| BioNtech | Buy | 10 | 100% long | 51 to 250 |
| Moderna | Buy | 15 | 99% long | 51 to 250 |
| Johnson & Johnson | Buy | 17 | 97% long | 51 to 250 |
| Aspen Pharmacare | Buy | 6 | 83% long | 50> |
Pfizer Inc.
Pfizer has recently announced that in tests of over 40 000 people, its COVID-19 vaccine trials had produced a 90% efficacy rate. The company is looking to apply for emergency use authorization from the Food and Drug Administration (FDA) after two months of final phase trials are complete in the third week of November. Pfizer has partnered with BioNtech for the development of the aforementioned vaccine.
The news has been positive for equity markets as it suggests that the current economic disruption from the pandemic and lockdowns which have ensued could be reversed in the no too distant future.
| Company | Average broker rating | No. of brokers | IG client sentiment | No of clients |
| Pfizer Inc. | Hold | 19 | 98% long | 500+ |
BioNtech
BioNtech and Pfizer Inc. have partnered in the development of the new vaccine drug which is showing much promise in final stage trials. The broker rating and client sentiment data is suggesting that the company may be preferred amongst brokers surveyed by Thomson Reuters and IG clients, although it must be noted that this is off a smaller data sample.
After making a new short term high, the share price of BioNtech has started to pull back towards gap support from overbought territory. The underlying trend does however remain up. Traders looking for long entry might hope for a further pullback towards the 92.25 level to do so. In which case 115 would again become the favoured upside target from the move, while a move (close) below trend line support could indicate the failure of the bullish assumptions.
| Company | Average broker rating | No. of brokers | IG client sentiment | No of clients |
| BioNtech | Buy | 10 | 100% long | 51 to 250 |
Moderna Inc.
Moderna Inc is expected to release its analysis data from late-stage trials of its experimental coronavirus vaccine in the next few days. In September, the company became the first pharmaceutical maker to release its vaccine trial protocol. The group has guided that if the analysis is positive, emergency FDA approval could be sought in December and general population use could be provided by as soon as January 2021.
The Share price of Moderna Inc. has reacted favourably to the prospect of its nearing vaccine as well as news of the Pfizer vaccine. The news has prompted a break of the 79.95 resistance level, with 94.95 the next upside resistance target considered from the move.
| Company | Average briker rating | No. of brokers | IG client sentiment | No of clients |
| Moderna | Buy | 15 | 99% long | 51 to 250 |
Johnson & Johnson
Johnson & Johnson is currently in Phase III clinical trials of both a single shot and a double shot COVID vaccines, with testing having started in August and September respectively. The late stage trial have prompted the company to approach others with regards to increasing manufacturing capacity upon the event of the drugs successful outcomes and approval.
The share price of Johnson and Johnson continues to trade in a rangebound fashion. Recent vaccine progress news has seen the price moving to test resistance at 152. The move higher has however also moved the share price into overbought territory.
Traders who are positive on possible future vaccine outcomes for the group, might hope for a pullback from overbought territory, towards the 144 level for long entry.
| Company | Average broker rating | No. of brokers | IG client sentiment | No of clients |
| Johnson & Johnson | Buy | 17 | 97% long | 51 to 250 |
Aspen Pharmacare
Recently announced that the group has reached a preliminary agreement with Johnson & Johnson to commercially manufacture its potential COVID-19 vaccine. Aspen has said that it has agreed to provide capacity required for the manufacture of J&J's vaccine candidate still in clinical trials, at its R3bn Port Elizabeth facility.
| Company | Average broker rating | No. of brokers | IG client sentiment | No of clients |
| Aspen Pharmacare | Buy | 6 | 83% long | 50> |
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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