BioNTech After the Numbers: The Stock Continues to Rise

Last Updated: 7. November 2023By

BioNTech has achieved some great successes on the stock market in recent days. The share price has now increased for the third time in a row. Investors consider the stock to be interesting again โ€“ does this apply to you as well (at least in my opinion)?

BioNTech: Currently, from my perspective, this is only a short-lived surge – initially. The share price is still below the important threshold of 100 euros, and thus has not yet reached the upward trend from the perspective of hype investors. There is a consensus estimate among analysts, expecting a price target of more than 40% plus. The price could reach the mark of 130.54 euros.

However, I currently do not expect this to happen. You cannot expect that the price will rise to these levels within 12 months, which is usually the time frame estimated for such a development. There are several reasons for this.

The most important reason: The recent share price gains are based on the 3rd quarter results reported by BioNTech. The results have been quite satisfactory, according to market opinion. In fact, revenues exceeded expectations. But: Revenues amounted to 895 million euros. Last year, the company from Mainz still generated revenues of 3.46 billion euros. The net profit dropped to 160 million euros in the current year reported. Last year, this profit amounted to 1.784 billion euros.

The share is expensive compared to this The two figures alone can be used for comparison. The profit has collapsed by a factor of more than 90%. Revenues fell by more than a third. But the share has had to accept a loss of 40% in the last 12 months.

For me, this means in summary: The revenue decline was correctly valued (if you only consider the share price decline and the revenue loss). The further decreasing profitability is not even reflected in the share price declines. BioNTech has become less profitable than can be assumed from the share price losses.

This can also be seen in the figures for the price-earnings ratio. Currently, investors are paying a price-earnings ratio of around 20 based on the expected profits for this year. That is several times more than was paid at the peak. You, as a shareholder, are paying significantly more and have to live with worse prospects. The comparison is unfavorable for you in two ways.

BioNTech: Does the 100 euro mark still attract – really? – WKN: A2PSR2 – ISIN: US09075V1026 Source: https://fundamental.aktienscreener.com/US09075V1026/EI/biontech-se-adrs/data