Valneva SE's Q2 Sales Decline Amid New Projections

First Berlin Equity Research has released an update on Valneva SE, maintaining a BUY recommendation but adjusting the target price to €4.40 from €4.50. The revision reflects lower-than-expected profits and increased net debt forecasts.

Valneva reported a 21% decline in product sales for Q2 2026, falling 3.5% short of the consensus estimate of €34.7 million. Despite this downturn, forecasts suggest a 17.3% increase in sales for the second half of the year, supported by anticipated higher demand for Ixiaro, partly due to a new U.S. Department of Defense contract.

The company also expects its gross margin, which dropped significantly to 4.6% in Q2/26, to rebound above the 50% threshold later this year. Concurrently, Valneva's Lyme disease vaccine candidate, LB6V, is progressing towards potential regulatory approvals in Europe and the U.S., with decisions expected within a year.