5 Cheap Biotech Stocks To Buy

1. BioNTech SE (NASDAQ:BNTX)

Number of Hedge Fund Holders: 18

P/E ratio as of January 22: 3.25

BioNTech SE (NASDAQ:BNTX) is based in Germany. It develops and commercializes immunotherapies for cancer and other infectious diseases.

On December 15, Tazeen Ahmad at BofA upgraded BioNTech SE (NASDAQ:BNTX) shares from Neutral to Buy.

As of September 30, 2022, BioNTech SE (NASDAQ:BNTX) had about $14.15 billion in cash and equivalents and total trade receivables of $7.71 billion. Wall Street analysts consider the stock to be undervalued, with BofA holding a $239 price target on the stock, compared to its current share price of $142.79. This represents significant upside potential, further demonstrated by the company’s P/E ratio of 3.25, which is far below its peers in the biotech space.

In total, 18 funds were long the stock, with a total share value of $185.9 million.

Artisan Partners, an investment management company, mentioned BioNTech SE (NASDAQ:BNTX) in its third-quarter 2022 investor letter. Here’s what the firm said:

“BioNTech SE (NASDAQ:BNTX) is a leading biotech company focused on developing immunotherapies to treat cancer and other serious diseases. Over the past year, we trimmed our position significantly as we believed the stock’s valuation failed to reflect the windfall nature of COVID-19 vaccine cash flows. With the stock nearly 70% off its highs and, more importantly, at a reasonable discount to our PMV estimate, we view the valuation as opportunistic given its long-term profit cycle potential. BioNTech’s intellectual property in mRNA, and COVID funded manufacturing capacity leave it well-positioned to develop new mRNA vaccines and cancer therapies. In addition, the company has non-mRNA technology (e.g., cell therapy assets) and blue-chip partnerships offering additional optionality. While the company’s R&D pipeline beyond COVID-19 vaccines will take some time to mature, it is well funded by close to $20 billion in COVID-vaccine proceeds. We increased our position within the GardenSM as the stock declined.”

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