Earnings Previews: Canoo, BioNTech

By Paul Ausick Published Mar 26, 1:17PM EDT

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Next week’s earnings reports get off to a slow start, with just one report of interest coming Monday after markets close and one more before markets open Tuesday morning. The pace picks up again Tuesday afternoon, but that’s a story you’ll have to wait for Monday to read.
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Canoo

Canoo Inc. (NASDAQ: GOEV) came public in late December through a reverse merger with blank-check company Hennessy Capital. Since the initial public offering, the stock has dropped nearly 33%. In mid-January, Canoo filed a prospectus to sell up to 186.7 million shares of common stock, to issue nearly 24.4 million more shares exercisable through warrants and 1.84 million warrants. By the end of January, shares of the EV maker had fallen by 20% from the IPO price.
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Only two analyst firms follow the stock and both have issued Buy ratings. The mean price target on the stock is $26.50, which implies a potential upside of about 108% from the current trading price of around $12.75. At the high target of $30 a share, the potential upside is 135%.

The company is expected to post a fourth-quarter 2020 loss per share of $0.14 on sales of $3 million. For the full 2020 fiscal year, the loss per share is expected to be $2.51 on sales of $5.8 million. The loss per share is expected to shrink to $1.39 in the 2021 fiscal year as sales rise to $120 million.

In the noon hour Friday, Canoo traded at $12.83 a share, in a post-IPO range of $9.68 to $24.90. Nearly 6 million shares trade on average every day.

BioNTech

BioNTech S.E. (NASDAQ: BNTX | BNTX Price Prediction) leaped to a new all-time high of $131.00 following the announcement that the company’s COVID-19 vaccine, developed in conjunction with Pfizer, had received emergency use authorization in the United States. The Mainz, Germany-based biotechnology firm came public in the United States in October of 2019 at $15 per American depositary share (ADS). For the 2020 calendar year, the stock gained nearly 141%, while Pfizer gained just 3.2%.

For the fourth quarter, BioNTech is expected to report a loss per share of $0.18 on sales of $225.4 million. For the 2020 fiscal year, the loss per share is forecast at $1.89 on sales of nearly $467 million. The first quarter of fiscal 2021 is forecast to produce earnings per share (EPS) of $2.06 on sales of around $984 million, and the full fiscal year is tabbed to produce EPS of $17.45 on sales of $7.9 billion.

Of the 10 ratings on the stock, half are Hold and the other half are Buy or Strong Buy. The consensus price target is about $120, implying a potential gain of 25% at the current share price of around $96.25. At the high target of $135, the potential gain is just over 40%.

The company was notified Friday that its plant in Marburg, Germany, has been approved to manufacture the company’s coronavirus vaccine. That raises BioNTech’s annual production capacity of the vaccine to a maximum of a billion doses once the plant is fully operational.

BioNTech ADSs traded up about 1% Friday, at around $96.25, in a 52-week range of $37.00 to $131.00. The company does not pay a dividend, and more than 2 million ADSs trade on average every day.

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About the Author Paul Ausick →

Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.