BioNTech's (BNTX) cancer-drug pipeline is showing stronger early results and is approaching several important clinical milestones, improving confidence in the company's long-term outlook, UBS Securities said Wednesday in a report.

BioNTech is developing a new type of cancer medicine designed to both activate the immune system and cut off a tumor's blood supply, and early data from the company's lead program, pumitamig, in lung cancer have been encouraging in studies conducted in China and globally, with safety results that appear manageable, the report said.

BioNTech's broader cancer pipeline remains under-recognized, and pumitamig may become competitive in several difficult-to-treat cancers, including triple-negative breast cancer and colorectal cancer, the report said. Global trial results look similar to early data from China, easing investor concerns that the treatment might not work the same way across regions, UBS said.

A key moment for the field will come at the upcoming American Society of Clinical Oncology meeting, where Akeso and Summit Therapeutics (SMMT) will present overall survival data from their HARMONi-6 study, the report said. Strong results would help validate the drug approach BioNTech is pursuing and may shift sentiment around the company's oncology strategy, UBS said.

UBS upgraded its rating on BioNTech stock to buy from neutral and raised its price target to $135 from $117.

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