Please ensure Javascript is enabled for purposes of website accessibility

BioNTech Is No Longer a Buy, Says Analyst

By Eric Volkman - May 11, 2021 at 3:28PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A Bryan Garnier prognosticator increases her price target despite the recommendation chop.

Despite some good news recently about the coronavirus vaccine it co-developed, BioNTech (BNTX -0.49%) has been hit with a recommendation downgrade.

In a research note published on Tuesday, Bryan Garnier analyst Olga Smolentseva changed her view on the stock to neutral from the previous buy recommendation. At the same time, though, she significantly raised her price target on the stock, from $135 per share to $206.

A syringe being filled with a vaccine from a vial.

Image source: Getty Images.

BioNTech shot to fame last year due to that vaccine, BNT162b2, which it co-developed with pharmaceutical giant Pfizer. Both became popular coronavirus stocks, particularly after the jab was authorized for emergency use in both the the U.S. and the European Union -- two massive markets -- in December.

This pushed BioNTech's results high into the sky; last Friday, the company unveiled its first-quarter results, showing higher-than-expected revenue growth of nearly 7,300% and a flip deep into the black on the bottom line.

BNT162b2 should find its way into more American arms; on Monday, the FDA expanded its Emergency Use Authorization for the vaccine to include adolescents ages 12 to 15. The regulator quoted its acting commissioner, Janet Woodcock, as saying that this "allows for a younger population to be protected from COVID-19, bringing us closer to returning to a sense of normalcy and to ending the pandemic."

But many investors might consider BioNTech's explosive growth story to be over. In terms of both cases and fatalities, the pandemic is receding across the U.S., plus the Biden administration has indicated its support for patent waivers on coronavirus vaccines.

At any rate, Smolentseva's new outlook on the stock isn't doing it any favors. In late afternoon trading Tuesday, BioNTech was down by 2.2% while the S&P 500 index was falling 1.9%.

 

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

BioNTech SE Stock Quote
BioNTech SE
BNTX
$146.88 (-0.49%) $0.73
Pfizer Inc. Stock Quote
Pfizer Inc.
PFE
$49.38 (1.66%) $0.81

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
397%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/19/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.