2. BioNTech SE (NASDAQ:BNTX)
Number of Hedge Fund Holders: 20
BioNTech SE (NASDAQ:BNTX) is a German biotechnology company that develops and manufactures novel therapies for cancer and other serious diseases. The company utilizes advanced technological discoveries and therapeutic drug platforms for the rapid development of novel biopharmaceuticals. BioNTech SE (NASDAQ:BNTX) stands second on our list of the best German stocks to buy now.
In August, UBS lifted its price target on BioNTech SE (NASDAQ:BNTX) to $300 from $111 and named the company as a crucial player in the Covid-19 vaccine space. The firm’s analyst, Eliana Merle noted that the company could benefit from continued boosted shots. In Q2 2021, BioNTech SE (NASDAQ:BNTX) posted revenue of €5.3 billion, up from €41.7 million during the same period last year. The company also reported estimated vaccine revenue of €15.9 billion of 2.2 billion signed supply contracts of Covid-19 vaccine doses. BioNTech SE (NASDAQ:BNTX) targets the manufacturing capacity of 3 billion to 4 billion doses of Covid-19 vaccines for the year 2022. BioNTech SE (NASDAQ:BNTX) jumped from $66.6 in September 2020 to $346.9 in September 2021, gaining 418.4% in the past year.
As of Q2 2021, 20 hedge funds tracked by Insider Monkey have positions in BioNTech SE (NASDAQ:BNTX), up from 18 in the previous quarter. The total value of these stakes is $579.1 million. With over 1.2 million shares, worth $276.7 million, Coatue Management is the company’s leading shareholder.
Artisan Partners recently released its Q2 2021 investor letter and mentioned BioNTech SE (NASDAQ:BNTX) in it. Here is what the firm has to say:
“Among our top contributors as BioNTech. Shares of BioNTech doubled in Q2 as the scientific and commercial success of the company’s highly effective COVID-19 mRNA vaccine came into sharper focus. The emergence of mRNA vaccines—which instruct cells to make a protein to trigger an immune response instead of putting a weakened or inactivated germ into our bodies—from BioNTech, Pfizer and Moderna have proven instrumental in combatting the COVID-19 pandemic. The companies’ compelling clinical data have made mRNA vaccines the preferred shots globally, prompting BioNTech and its partner Pfizer to expand manufacturing capacity rapidly to keep up with demand. The company now expects to be able to supply up to three billion doses in 2021, a remarkable achievement.
While we have long admired BioNTech’s management, technology platform and deep pipeline of novel cancer therapies, the dramatic stock price increase in Q2 causes some challenges. On one hand, the company is now in an incredibly strong financial position—profits from COVID-19 vaccines will likely give BioNTech massive cash reserves with which to invest aggressively in the broader potential of mRNA therapeutics. On the other hand, we can expect COVID-19 sales to decline sharply longer term, though the shape of this curve is up for debate based on how often booster shots will be needed. We are being prudent in our effort to appraise and value the windfall of profits over the intermediate term while balancing the potential for declining profits for several years post-pandemic (even if the company’s cancer pipeline progresses nicely). We have trimmed our position size to manage this risk accordingly.”
