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BofA analysts upgraded BioNTech SE (NASDAQ:BNTX) to Buy from Neutral, maintaining a $239 price target on the stock in a note to clients Thursday.
The upgrade is due to BofA’s view that the current valuation is an attractive entry opportunity “given several near-term opportunities for upside” coming from an expanded opportunity for the COVID vaccine, de-risking of the growing oncology pipeline, and a robust platform backed by a strong cash position.
“We view the recent update from MRNA/MRK PCV program in melanoma as having a positive read-through to BNTX’s iNeST platform (BNT122), and providing POC validation ahead of BNT122’s readout in combo with pembro in 1L advanced melanoma in 1H23. The company also has an iNeST study underway in adjuvant CRC which could also have data in the near term,” wrote the analysts.
BofA views the company’s oncology pipeline as representing the next leg of growth, while they also see the “potential for upside as these programs mature.”
“iNeST and FixVac currently contribute $33/sh to our valuation. We think these and other programs (including from Genmab (NASDAQ:GMAB) collaboration) could become larger drivers of value,” the analysts concluded.
