BioNTech stock price target lowered to $181 at Clear Street on payment timing

Investing.com - Clear Street lowered its price target on BioNTech (NASDAQ:BNTX) to $181.00 from $185.00 on Monday while maintaining a Buy rating on the stock. BioNTech currently trades at $102.45, significantly below Clear Street’s target and the analyst consensus high target of $170.43.

The adjustment primarily reflects updated assumptions regarding the timing of collaboration payments from Bristol Myers, according to the research firm.

Clear Street views BioNTech shares as undervalued, noting the company still generates significant COVID revenues while its pipeline asset pumitamig holds substantial value. InvestingPro data confirms this undervaluation assessment, with the stock trading below its calculated Fair Value. The company generated $3.39 billion in revenue over the last twelve months.

The firm characterized BioNTech’s updated guidance as a "healthy sign" of improved operating efficiency and appropriate pipeline prioritization, particularly regarding pumitamig. InvestingPro analysis shows BioNTech maintains exceptional financial health with a current ratio of 8.61, indicating liquid assets far exceed short-term obligations.

Clear Street added that pumitamig’s implicit value remains well below that of competitor Summit’s ivonescimab, which the firm rates as Buy with a $31 price target.InvestingPro reveals BioNTech holds more cash than debt on its balance sheet, providing financial flexibility to advance its pipeline assets. Discover more insights with the comprehensive Pro Research Report, available for BioNTech and 1,400+ other US equities on the InvestingPro platform.

In other recent news, BioNTech reported third-quarter revenue of €1.52 billion, significantly exceeding analyst expectations of €1.01 billion. Despite this revenue surge, the company posted a loss of €0.12 per share, contrary to analysts’ predictions of a profit of €0.10 per share. The impressive revenue figures were largely attributed to BioNTech’s collaboration with Bristol Myers Squibb, which included a notable $1.5 billion payment received during the quarter. Additionally, BioNTech has raised its full-year revenue guidance, indicating confidence in its financial performance. These developments highlight BioNTech’s strong revenue generation capabilities, even as it navigates challenges in achieving profitability. The company’s recent financial activities have drawn attention from investors and analysts alike, with the revenue results being a focal point.

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