November 1st, 2023 | 06:10 CET
More than 300% share price opportunity: BioNTech, Morphosys and Cardiol Therapeutics
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"[...] Since inflammation is a cause of heart failure, and heart failure in turn is one of the leading causes of death in the Western world [...]" David Elsley, CEO, Cardiol Therapeutics
Cardiol Therapeutics: Deep pockets and 300% potential
Both the analysts at Canada's Leede Jones Gable and Germany's First Berlin see more than 300% upside potential for Cardiol Therapeutics' stock. Leede Jones Gable has set a price target of USD 3.25, while their counterparts in Berlin have set a price target of EUR 3.30. The biotech share is currently trading at USD 0.80.
In recent weeks, there has been a positive news flow. Most recently, positive results were reported for cannabidiol, the active pharmaceutical ingredient in Cardiol's innovative CRD-38 formulation. It is administered subcutaneously and slows the increase in body and heart weight. It also prevented increases in key cardiac inflammatory and remodeling markers in heart failure. This implies new therapeutic potential for CRD-38 in heart failure.
Analysts at Leede Jones Gable commented: "Although Cardiol is further advanced in testing the anti-inflammatory cardiovascular activity of CBD in two other medical markets, the Company's progress in testing a subcutaneously injectable formulation of this viscous hydrophobic agent is equally integral to our CRDL investment thesis. We attribute tangible market value to diastolic heart failure as an addressable cardiovascular market for the Company." Cardiol is also advancing in the development of CardiolRx™ for the treatment of recurrent pericarditis (RP) - inflammation of the pericardium - and acute myocarditis (AM) - inflammation of the heart muscle. First Berlin analysts expect positive news from this area before the end of the year. By then, at the latest, the consolidation of the share should be over.
BioNTech: Buy or Hold?
Those who had hoped that the positive news from BioNTech's cancer pipeline would ensure a sustained positive share price reaction were caught off guard. The joy lasted only a few days. In the meantime, the share has fallen back below EUR 90. Analysts are also surprisingly calm, and the COVID-19 vaccine still dominates discussions. From JPMorgan's point of view, the BioNTech share is currently not a buy. Uncertainty about future revenues from the COVID-19 vaccine and the value of the product pipeline leaves little room for the stock. Thus, JPMorgan's price target for BioNTech is USD 106.
UBS's price target is significantly higher. Their analysts believe that the BioNTech share is worth USD 153. Given the current price, however, it is surprising that the recommendation is still only "Neutral". It seems that there is some uncertainty even within their own analysis. For Jefferies, Deutsche Bank, Morgan Stanley and Goldman Sachs, the BioNTech share is currently also only a hold position.
Morphosys: Buy or sell?
At Morphosys, analysts are currently in the bull camp. After all, the shares of the German biotech pioneer have gained more than 100% this year and are hovering around EUR 30. JPMorgan still sees a 20% upside. Sales of the blood cancer drug Monjuvi in the USA are exceeding expectations. This increases the chance that the annual target could be too low. For now, the analysts have not raised their estimates, and the price target remains at EUR 36. UBS recommends the Morphosys share with a "Buy", and a price target of EUR 45. According to UBS analysts, Monjuvi's sales are in line with expectations.
The analysts at Deutsche Bank were not yet convinced by the preliminary figures for the third quarter. They hope for more details in the final quarterly report and left their rating of the Morphosys share at "Hold". The price target is EUR 25, even slightly below the current level.
Biotech stocks are currently facing challenges, with even positive news having little impact on their prices. Analysts are also cautious about BioNTech and Morphosys. Experts see more upside potential for newcomer Cardiol Therapeutics. If First Berlin is right and there is more positive news soon, then buying Cardiol Therapeutics may prove to be a worthwhile investment.
Conflict of interest
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