BioNTech SE, known for its pivotal role in developing vaccines during the Covid-19 pandemic, might soon transform into a significant player in the oncology field, according to insights from Truist Securities. On Thursday, the investment bank began covering the German biotech firm, which is renowned for its work in both vaccines and immunotherapies, and gave it a buy rating. Truist has set a target price of $172 per share for BioNTech’s Nasdaq-traded American depositary receipts, indicating a potential growth of nearly 41% from the $122.15 closing price observed on Thursday.
Asthika Goonewardene, a Truist analyst, highlighted that BioNTech’s ventures into oncology could become a substantial growth catalyst for the company while it continues to excel in the vaccine domain. The focal point of this growth is BioNTech’s advanced clinical product, BNT327, which is designed to target PD-L1 and VEGF-A proteins, crucial to the body’s immune response to cancer. Goonewardene pointed out that although oncology’s value in previous years was underestimated, 2024 has helped identify which assets are truly promising. Looking ahead to 2025, there are expectations for substantial updates on these critical assets, which could significantly impact BioNTech’s stock price and demonstrate how the company might reach its projected $172 price target.
Furthermore, Goonewardene emphasized that BioNTech is financially equipped, with substantial funds available, to pursue an aggressive development strategy for BNT327. This strong financial backing could be key to realizing the drug’s full potential, setting it apart from most of its competitors. Over the past year, BioNTech’s stock has risen by over 15%, reflecting a positive trend.
