Strategic Partnership and Financial Stability Drive Buy Rating for BioNTech

H.C. Wainwright analyst Robert Burns has reiterated their bullish stance on BNTX stock, giving a Buy rating on June 3.

Robert Burns has given his Buy rating due to a combination of factors, primarily focusing on the strategic partnership between BioNTech and Bristol Myers Squibb. This collaboration is expected to enhance the development and commercialization of BNT327, a promising bispecific antibody. The partnership mirrors the successful collaboration with Pfizer for COMIRNATY, suggesting a potential competitive edge for BNT327 in the market.
Moreover, the financial terms of the agreement, including a $1.5 billion upfront payment and potential milestone payments up to $7.6 billion, provide significant financial incentives and stability for BioNTech. The valuation approach, using a discounted cash flow model with an 8% discount rate, supports a price target increase to $145, reflecting confidence in BioNTech’s future growth prospects. However, Burns acknowledges risks such as regulatory challenges and market uptake, which could impact the stock’s performance.

According to TipRanks, Burns is an analyst with an average return of -16.7% and a 30.06% success rate. Burns covers the Healthcare sector, focusing on stocks such as BioNTech SE, Perspective Therapeutics, and Zymeworks.

In another report released on June 3, Deutsche Bank also maintained a Buy rating on the stock with a $140.00 price target.