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Restricted Booster Access or Not, BioNTech Stock Is Way Overvalued, Says J.P. Morgan

After a marathon session to determine whether BioNTech (BNTX) and partner Pfizer’s (PFE) Covid-19 booster shot of Comirnaty (BNT162b2) was deserving of approval, the FDA AdCom’s decision was based on a deviation from the intended purpose.

The panel concluded that on the original voting question whether all individuals age 16+ should be given a booster shot, there were uncertainties on the safety front (including younger individuals being at risk of myocarditis) and a risk/benefit still unknown for the populace at large at this point in the pandemic. As such, the panel voted 16-2 against broad booster approval.

However, on the revised voting question concerning a booster dose for high risk and elderly (65+) individuals only, the panel voted unanimously in favor – 18 to 0.

“We feel this should have been the initial ask all along,” commented J.P. Morgan’s Cory Kasimov. So, where does this leave us now, the analyst asked rhetorically before providing a casually disappointed answer. “Probably about where we thought prior to this 8+ hour session.”

Kasimov thinks it won’t be long before a booster shot for the rest of the population gets a “roll-out,” anticipating it to come over the coming months. Additional insights on timing/details should be provided at the upcoming CDC ACIP meeting this week (Sept. 22-23).

Either way, restricted booster access or not, purely from an investing perspective, BioNTech stock has already provided shareholders with a bountiful share haul in 2021 (up by a huge 320%), preventing Kasimov from recommending investors hop on board right now.

“Bigger picture,” the 5-star analyst summed up, “Our model already contemplates eventual (relatively) widespread use of boosters, but we still believe BNTX (and MRNA) shares remain detached from fundamental valuation metrics and continue to trade primarily on momentum/COVID-19 headlines.”

All in all, then, there’s no change to Kasimov’s Neutral (i.e., Hold) rating or $153 price target, suggesting shares have a steep 57% drop from current levels to not look forward to. (To watch Kasimov’s track record, click here)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.