On Friday, HSBC adjusted its stance on BioNTech (NASDAQ:BNTX) shares, reducing the price target to $90 from the previous $115, while retaining a Hold rating on the stock. The decision by the firm reflects an analysis of BioNTech's financial outcomes for 2023 and recent updates on its product pipeline. The new price target suggests that there is no expected upside from the current stock price level.
BioNTech, a biotechnology company traded on NASDAQ:BNTX, has been focusing on expanding its research and development efforts. The company has set a goal to have over ten registrational trials underway by the end of 2024. This ambitious target is supported by an increase in R&D spending, aimed at advancing a diverse range of pipeline assets to compensate for the anticipated decline in COVID-19 related revenue.
The company's research and development productivity is deemed critical as it moves forward, especially considering the potential volatility in near-term revenue. This volatility is attributed to factors such as Pfizer (NYSE:PFE)'s inventory write-down, which poses a risk to BioNTech's earnings from its COVID-19 vaccine.
Despite the reduction in the price target, HSBC acknowledges the potential of BioNTech's oncology products in the pipeline. These products are seen as promising and could play a significant role in the company's future growth. However, the near-term financial risks associated with COVID-19 vaccine sales continue to overshadow these prospects.
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