BioNTech (BNTX) shares jumped 14.96% after the immunotherapy company delivered better-than-expected second-quarter financial results. Revenue and earnings came in above consensus estimates as COVID-19 vaccine shipments crossed the one billion mark.
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Revenues in the quarter totaled €5.31 billion compared to €41.7 million in the same quarter last year, and topped consensus estimates as analysts were expecting revenues of €3.84 billion. (See BioNTech stock charts on TipRanks)
BioNTech bounced back to profitability posting a net profit of €2.79 billion, up from a net loss of €88.3 million in the same quarter last year. Earnings per share were €10.77, beating consensus estimates of €8.91 a share.
BioNTech has signed supply agreements for approximately 2.2 billion doses of the vaccine and intends to enhance access to low- and middle-income countries. The company expects to generate revenues of approximately €15.9 billion in 2021 upon delivery of the signed contracts. In addition, the company remains focused on enhancing its oncology pipeline.
“We were able to advance multiple oncology programs across various technology platforms which are now entering later stage testing, providing the potential for introducing a series of product candidates to the market in the coming years,” said CEO Ugur Sahin.
During the quarter, BioNTech agreed to acquire Gilead’s Kite Pharma’s solid tumor neoantigen T cell receptor R&D platform and clinical manufacturing facility. The acquisition will bolster the company’s production capacity and enhance clinical trials in the U.S.
Last week, Berenberg Bank analyst Shanshan Xu reiterated a Buy rating on the stock and raised the price target to $400 from $325, implying 10.56% downside potential to current levels. According to the analyst, the ongoing talk about the COVID-19 booster vaccine is an important revenue stream for BioNTech.
Xu stated, “We expect the revenue from the vaccine will accelerate BNTX’s innovation and provide flexibility in its pipeline development.”
Consensus among analysts is a Hold based on 3 Buys, 5 Holds, and 1 Sell. The average BioNTech price target of $217.50 implies 51.37% downside potential to current levels.
BNTX scores an 8 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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