Valneva SE: Research Update Reaffirms Buy Rating, Raises Target Price

First Berlin Equity Research GmbH has released an update on Valneva SE, maintaining a "Buy" recommendation with an upgraded target price of €8.10, up from €7.70. The increase is driven by a robust 51.2% year-on-year revenue growth in Q1 2025, reaching €48.6m, mainly due to the resolution of prior supply constraints.

Cost control initiatives have improved the company's financial standing, reducing its operating cash outflow to €8.1m, compared to €28.4m in Q1 2024. Moreover, the cash reserve at the end of Q1 2025 was bolstered to €153m, aided by a €14.2m capital injection from Novo Holdings A/S.

Valneva anticipates the commercial launch of its Lyme disease vaccine candidate, VLA15, by 2027. This development is expected to usher in significant profitability, potentially yielding milestone payments of USD143m from partner Pfizer. The global market for a Lyme disease vaccine is currently estimated to exceed USD1bn but could surpass USD2bn.