tiprankstipranks
BioNTech Stock: Is the Drop Warranted?
Stock Analysis & Ideas

BioNTech Stock: Is the Drop Warranted?

Shares of vaccine makers that rallied significantly amid the COVID-19 pandemic have reversed a substantial portion of their gains. Take BioNTech SE (NASDAQ: BNTX) for instance. BNTX stock has lost about 56% of its value in the past six months, underperforming the benchmark index by a wide margin. 

It’s worth noting that general selling of high-growth stocks, profit-taking, and an expected decline in the need for COVID-19 vaccines in the future remains a drag. 

Given the significant price decline, investors holding portfolios on TipRanks have added BNTX stock to their portfolios. Per the data, 0.9% of these investors have increased their stake in BioNTech shares in the last seven days. 

However, TipRanks’ data shows that hedge funds have been net sellers. According to the Hedge Fund Trading Activity tool, hedge funds have offloaded 496.9K BioNTech shares over the past three months.

Now What?

Highlighting the significant price drop, Robert Burns of H.C. Wainwright stated that BioNTech stock has declined by more than 51% in two months compared to a decrease of 21.1% in the benchmark XBI biotech index. 

Burns added, “From our vantage point, this attrition appears unwarranted given the continued ability of the original vaccine to protect against severe disease and hospitalization due to infection by multiple variants of the SARS-CoV-2 virus, including Delta, which continues to circulate in multiple populations.”

However, the analyst noted that the “transition to endemic status for the COVID-19 pandemic may pose a long-term risk to the COMIRNATY franchise, because this may reduce population willingness to endure frequent vaccine shots.” 

Nevertheless, Burns keeps a Buy rating on BNTX stock as he expects that the need for the vaccine could persist. Further, the analyst advised investors to focus on the “potential applicability of BioNTech’s pioneering mRNA-based technology platform to vaccines for other infectious respiratory diseases.” 

Wall Street’s Take

The near-term uncertainty has kept most analysts on the sidelines. BNTX’s Hold consensus rating on TipRanks is based on 3 Buy and 9 Hold recommendations.

However, BNTX’s stock price forecast on TipRanks shows significant upside potential due to the recent pullback in price. The average BioNTech SE price target of $276.36 implies 59.9% upside potential to current levels.

Download the TipRanks mobile app now

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Read full Disclaimer Disclosure.

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles