Buy BioNTech SE at the low PE of 2.31

By:
on Jun 16, 2022
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  • BioNTech expects EPS of $61 and has a forward PE of 2.31
  • The stock is pivoting at the sustainable support of $137
  • We strongly recommend buying BioNTech with a target price of $179

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BioNTech SE (NASDAQ:BNTX) is trading at $137.99. The 52-week range has been $121 to $464. The stock is trading near the bottom, and we think it is a buy.

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BioNTech is A-rated for value, growth, and momentum. It is a good fit for any of the three investment styles. However, technical analysis would point to a holding decision mainly because of the bear market. The return ratios for BioNTech are some of the highest in the industry. ROE was recorded at 144%, while the ROA is 108%. The high return ratios are expected to continue supporting the stock.

Fundamental indicators suggest buying and holding the stock for the long term. BioNTech has a low forward PE of 2.31. This suggests that the stock is priced cheaply. Last year, the EPS was $49. This year’s EPS is expected at $61.

The return ratios for BioNTech are high and growing. The Achilles heel for the stock is the ability to grow sales. With COVID-19 vaccine sales declining, BioNTech will need to develop new products.

BioNTech consolidates between $137 and $179

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Source – TradingView

BioNTech is consolidating between $137 and $179. At $137 the stock is at a support level. The MACD is mildly bullish. This analysis shows that BioNTech could pivot from the support and find the resistance level. At $137 the stock is definitely a buy.

Summary

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BioNTech SE is a strong buy. The stock has high and growing ROE and EPS ratios. The PE of 2.31 indicates that the stock is cheaply valued by the market.

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