RBC Capital Markets downgrades Abcam to ‘sector perform’
Abcam
1,226.00p
16:39 13/12/22
11.15%
123.00p
RBC Capital Markets downgraded Abcam on Tuesday to ‘sector perform’ from ‘outperform’ and cut the price target to $22 from $23 as it recommended investors take profit on bid anticipation.
Pharmaceuticals & Biotechnology
20,005.17
17:09 23/12/24
1.24%
244.05
It noted that the shares are up 40% in the last 10 days, and 65% in the quarter to date.
"It is unclear how advanced the ‘strategic inquiries’ are, and the valuation work in this report implies relatively little further upside on a transaction anyway," RBC said.
"We have always liked Abcam's fundamentals but see activist investor engagement and anticipation of a potential bid as likely to drive material volatility in the shares.
"While our $22 price target informs our downgrade to sector perform, we would take profits here."