First Berlin updates its recommendation on Valneva with an adjusted price target

First Berlin Equity Research GmbH has published an update of its analysis on Valneva SE (ISIN: FR0004056851), where analyst Simon Scholes maintains his Buy recommendation but adjusts the price target slightly downward from 8.90 € to €8.60. This revision follows the publication of the financial results for the 2023 financial year. These results show a vigorous recovery in product revenues, up 26% and reaching 144.6 million euros, stimulated by the resumption of activity of travel.

The report also highlights a consolidated cash position, valued at around 200 million euros, thanks in particular to the recent sale of a priority overhaul voucher for 95 million euros. This advantageous financial situation would allow Valneva to continue its activities until 2025 without financial worries. However, for product revenue forecasts in 2024, the report adjusts its expectations, notably for the chikungunya vaccine, Ixchiq, whose sales ramp-up would be slower than expected.

Simon Scholes, however, remains optimistic about Valneva's medium and long-term prospects, particularly for Ixchiq and the Lyme disease vaccine candidate, VLA15, scheduled for 2027. Despite the downward revision of sales forecasts for Ixchiq in 2024 and 2025, the analyst maintains his buy recommendation, only adjusting his price target to €8.60.