AbCellera Biologics (ABCL) saw its stock price plummet by 20.31% during Friday's trading session, following the release of disappointing third-quarter financial results and a subsequent analyst downgrade. The biotechnology company's shares took a significant hit as investors reacted to the wider-than-expected losses and concerns about its future performance.
AbCellera reported a quarterly adjusted loss of 19 cents per share for the period ended September 30, missing the average analyst estimate of a 17-cent loss. This performance was worse than the 17-cent loss reported in the same quarter last year, marking a deterioration in the company's bottom line. Despite beating revenue expectations with a 37.6% year-over-year increase to $8.96 million, the company's total quarterly loss of $57.12 million raised concerns about its path to profitability.
Adding to the negative sentiment, Leerink Partners downgraded AbCellera Biologics from Outperform to Market Perform and reduced its price target from $5 to $4. This adjustment in rating and valuation reflects growing skepticism about the company's near-term prospects. While the average analyst recommendation remains a "buy" with a median 12-month price target of $8.50, investors appear to be reassessing the stock's potential in light of the recent financial performance and analyst actions.
Comments