BioNTech shares gain as BMO sets $127 target with Outperform rating

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BioNTech shares gain as BMO sets $127 target with Outperform rating
Credit: © Reuters.

On Friday, BMO Capital Markets initiated coverage on shares of BioNTech SE (NASDAQ: BNTX ), a company recognized for its pioneering work in mRNA technology, particularly in cancer and infectious disease therapies. The firm set a price target of $127 and issued an Outperform rating for the stock.

BioNTech, which saw significant growth during the COVID-19 pandemic, has experienced a pullback in its stock value, attributed to the uncertainties surrounding the pandemic's future. BMO Capital Markets sees this as an opportunity, pointing out that the market's focus on COVID-19 has overshadowed BioNTech's promising oncology pipeline. This pipeline is anticipated to potentially provide substantial upside to the company's shares as its mid and late-stage programs advance towards clinical de-risking in the years 2024 and 2025.

The firm's coverage comes at a time when BioNTech has a substantial cash reserve, approximately €17 billion, which it plans to use for business development and further diversification of its pipeline. This financial strength could enable BioNTech to enhance its portfolio and potentially increase shareholder value.

BMO's coverage note also highlights the potential of BioNTech's technology platform beyond its success with the COVID-19 vaccine. The company's focus on harnessing the immune system to combat cancer and other infectious diseases positions it at the forefront of medical innovation.

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