On Thursday, TD Cowen maintained a Market Perform rating on stocks of BioNTech (NASDAQ:BNTX) but reduced the price target to $95 from $101. The adjustment comes after BioNTech reported lower-than-expected sales of Comirnaty, its COVID-19 vaccine, in the fourth quarter.
The company faced write-downs from its partner Pfizer (NYSE:PFE) and a decrease in demand for COVID-19 boosters, leading to sales of €1.5 billion compared to the anticipated €1.8 billion.
BioNTech has also revised its revenue forecast for the fiscal year 2024, lowering the guidance to between €2.5 billion and €3.1 billion from the previous estimate of approximately €3 billion. The focus of the company is now shifting towards its oncology pipeline.
This includes Phase 1 data for FixVac and iNeST expected to be presented at the American Association for Cancer Research (AACR) and updates on multiple Phase 1/2 antibody-drug conjugates (ADC) and immuno-oncology (IO) programs throughout 2024.
Moreover, BioNTech anticipates providing an update on its Phase 1 shingles vaccine in the second half of 2024. The revised price target reflects lowered estimates for COVID-19 vaccine sales, which have impacted the company's near-term revenue outlook.
The financial adjustments and the shift in strategic focus to oncology and other vaccine developments come as the global demand for COVID-19 vaccines appears to be waning. Despite the reduction in the price target, BioNTech's diverse pipeline and forthcoming updates may offer new avenues for growth as the company pivots from its initial success with the COVID-19 vaccine.
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