BioNTech's stock surged 187% in one year — and there's more upside, says Berenberg

Published Tue, Jan 12 20213:48 AM EST

Key Points

German pharmaceutical company BioNTech, together with U.S. biotech giant Pfizer, co-developed a Covid-19 vaccine which has been authorized for emergency use by numerous countries.
"I think this year will be a catalyst-rich year," said Shu, a senior biotech analyst at Berenberg Capital Markets. "The Covid vaccine definitely is part of the story."

(This story is for CNBC PRO subscribers only.) BioNTech's shares have risen more than 180% in the last 12 months and hit a record high in December, but one analyst from investment bank Berenberg said there's more upside in the coming year. The German pharmaceutical company, together with U.S. pharmaceutical giant Pfizer , co-developed a Covid-19 vaccine which has been authorized for emergency use by regulators, including those in the U.S., U.K. and European Union. "I think this year will be a catalyst-rich year," said Zhiqiang Shu, a senior biotech analyst at Berenberg Capital Markets. "The Covid vaccine definitely is part of the story," he told CNBC's "Squawk Box Asia" on Tuesday. BioNTech shares listed on the Nasdaq have surged about 187% in the last 12 months, according to Eikon data. It rose 8.48% overnight and closed at $108.90 — and there could be another 15% upside, according to Shu. Berenberg has a buy rating for BioNTech, with a price target of $126. Shu is expecting data on a more thermostable formulation of the vaccine which won't need to be stored and transported at extremely low temperatures — a major challenge for distribution. There will also be tests done to determine whether the vaccine is safe for children and pregnant women, he said, adding: "I believe those are positive catalysts to watch." The firm's share price hit a record close of $129.54 in December last year. But the stock has seen wide swings, and took hits when new variants of the coronavirus emerged, raising questions over whether the vaccine would offer protection from the new strains. Dr. Ugur Sahin, CEO of BioNTech, told CNBC on Monday the company believes "the immune response which is induced by our vaccine could also deal with [a] mutated virus." Beyond the coronavirus, Shu said BioNTech has several new trials that could get investors interested in the stock. "The company has a broad pipeline in the oncology setting, which I think is very, very promising," he said. BioNTech has also published data showing how messenger RNA technology, which was used in its Covid vaccine, can be used to treat chronic, debilitating autoimmune diseases. "Those are great potentials, I believe," said Shu.

Vaccine ampoules stand on a table at the Harz Vaccination Centre.

Matthias Bein | picture alliance | Getty Images

(This story is for CNBC PRO subscribers only.)

BioNTech's shares have risen more than 180% in the last 12 months and hit a record high in December, but one analyst from investment bank Berenberg said there's more upside in the coming year.

The German pharmaceutical company, together with U.S. pharmaceutical giant Pfizer, co-developed a Covid-19 vaccine which has been authorized for emergency use by regulators, including those in the U.S., U.K. and European Union.

"I think this year will be a catalyst-rich year," said Zhiqiang Shu, a senior biotech analyst at Berenberg Capital Markets.

"The Covid vaccine definitely is part of the story," he told CNBC's "Squawk Box Asia" on Tuesday.