Jefferies analyst reveals his top two biotech stocks for 2023

Moderna Inc (NASDAQ: MRNA) has tanked nearly 15% in recent days but a Jefferies analyst dubs it one of his best ideas for 2023.

Moderna stock could climb another 50%

Earlier in December, the biotech company said its candidate vaccine for skin cancer showed encouraging results in a Phase II study (read more). That’s what Michael Yee is most bullish about.  

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I think that story will continue to unfold in 2023. Partner Merck is very bullish on this programme and opening up a lot of studies, including in lung cancer. So, it’s the first chapter and an important development.

The Nasdaq-listed firm will soon report Phase III data for its experimental RSV vaccine as well. Yee sees that as another reason to buy Moderna stock.  

He now sees upside in “MRNA” to $275 – up another 50% from here.

Yee is also bullish on the Amgen stock

A legacy name within “biotech” that pops out to Jefferies’ Michael Yee is Amgen Inc (NASDAQ: AMGN) that’s already up more than 15% for the year. Explaining why on CNBC’s “Closing Bell”, he said:

A more defensive large biotech company like Amgen is quite attractive in this difficult environment. [Also] in an offensive position where a renaissance of pipeline that has been going under appreciated.

The analyst is also constructive on its obesity drug currently named “AMG133” that was recently shown to have promising durability. Yee values the market for obesity drug at $20 billion to $50 billion.  

Earlier this month, Amgen Inc revealed plans of buying Horizon Therapeutics Plc for nearly $28 billion.