ABCL - Down 57% Is AbCellera Biologics a Buy on the Dip?
2024-06-13 05:40:00 ET
Discovering new drugs can be a lucrative endeavor, but things aren't working out lately for AbCellera Biologics (NASDAQ: ABCL) . Shares of this unusual biotech stock are down by about 57% from the high water mark they set last summer.
The steep losses might seem surprising if you've been paying attention to Wall Street analysts who follow AbCellera Biologics. KeyBanc has an overweight rating on the stock and a $7 per share price target, which implies a 103% gain over recent prices. Benchmark has a $9 per share price target on the stock, which implies a 161% gain.
At times like these, it's important to remember that sell-side analysts have incentives to produce attention-getting price targets, but nothing to lose if things don't work out. Repairing the damage that following an underbaked investing thesis can cause to your retirement plans isn't as simple.
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Down 57%, Is AbCellera Biologics a Buy on the Dip?