First Berlin Equity Research has published a research update on Valneva SE (ISIN: FR0004056851). Analyst Simon Scholes reiterated his BUY rating and maintained his EUR 8.60 price target.

The final 2023 results release package provided upward guidance revisions and improved medium-term visibility in several key areas. In addition, Valneva has also announced the 18 month extension of the interest-only period on USD100m of debt. This means Valneva will not have to repay any debt principal in either 2024 or 2025 and suggests the company will be able to reach consistent positive free cashflow following the expected 2027 Lyme disease vaccine launch without diluting shareholders. Our recommendation remains Buy with an unchanged price target of €8.60.