Valneva Stock: FDA Approves Vaccine – Price Explodes

Last Updated: 10. November 2023By

You are familiar with BioNTech, the German vaccine manufacturer that was particularly successful during the Corona period. Now there is an alternative on the stock market that did not make it during the Corona period: Valneva. The company made a jump of more than 9% today, but, according to analysts, still has considerable potential. Take a look at the stock.

No more Corona hope, but… The company was unable to push its alternative vaccine during the Corona period. No matter, say analysts and the market apparently now. Because Valneva has now developed a Chikungunya vaccine, which has been sold to the US Defense Department and has now been approved by the FDA today.

In other words, the deal is essentially valid and complete. The jump in the stock is therefore a reaction to a deal that was already known. That makes things a bit more difficult. Because Valneva has already priced in part of the joy.

The balance sheet data are currently not the best – perhaps „not yet“? Valneva is expected to generate revenues of around 180 million euros in the current year according to current estimates. The net result is estimated at -12 million euros and the market value is now 875 million euros. This results in a negative PE ratio that is even significantly in the red area.

The trend is right for Valneva The company will also generate a loss in the coming year, provided the estimates are correct. With slightly increasing sales, even the loss is expected to become larger. I assume that the estimates will be revised with the news from the USA. That’s one side. The other: I still don’t see profitability for the coming year.

Nevertheless, the value will presumably currently be significantly stronger in the trend than BioNTech, the competitor from Mainz – at least in terms of the Corona vaccines. BioNTech is currently losing ground as sales and earnings estimates are declining and will continue to do so in the coming year. Valneva, on the other hand, has at least the trend on its side.

With the recent gain, the so-called technical trend lines GD100 and GD200 have crossed. The lead is even about 1 euro (each), which is more than 10% cushion. Analysts expect an average price of 9.73. All that looks very good. Only: The economic prospects still do not convince me completely. Those who rely solely on trends will certainly find what they are looking for here, especially today.

Valneva: Strong trend achieved – WKN: A0MVJZ – ISIN: FR000405056851 Source: