First Berlin Equity Research has published a research update on Valneva SE (ISIN: FR0004056851). Analyst Simon Scholes reiterated his BUY rating and decreased the price target from EUR 4.50 to EUR 4.40.

Abstract
Product sales were down 21.0% in Q2/26 and were 3.5% below the consensus estimate of €34.7m due to a raft of one-off factors. The €142.5m midpoint of this year’s product sales guidance (unchanged on the Q1/26 report) implies a 17.3% y-o-y increase in H2/26 product sales. This development looks plausible given the likelihood of stronger H2/26 Ixiaro sales (due partly to a new Department of Defense contract) as well as the absence of exceptionally strong H1/25 Ixiaro, Dukoral and Ixchiq numbers from the comparison. We also expect the gross margin, which was as low as 4.6% in Q2/26 (Q2/25: 50.1%) to rebound to over 50% in H2/26. As we wrote in our study of 31 March after the Lyme disease vaccine candidate, LB6V, narrowly failed to meet the endpoint of its phase 3 trial, we see the probability that the FDA will approve LB6V as better than evens (67%). Pfizer has submitted a marketing authorisation application for LB6V to the European Medicines Agency (EMA). At the end of last week Valneva announced that the documentation has been technically validated by EMA. Pfizer intends to submit marketing authorisation documentation to the FDA later this year. Regulatory decisions from both bodies are expected within the next twelve months. We maintain our Buy recommendation, but have reduced our price target from €4.50 to €4.40 (upside: 49%) to reflect a reduction in our 2026 profit forecast due to a lower Q2/26 gross profit than we expected and an increase in the proforma net debt position.