2023-06-16 16:25:29 ET
BofA has upgraded Abcam ( NASDAQ: ABCM ) to buy, citing improved performance and recent investor activism.
In a note released on June 16, BofA commented that Abcam's financial results had improved "markedly" and that the company was "finally delivering on a long-term promise to to re-accelerate revenue growth and return the margin profile to historical levels."
The investment bank added that it had become "increasingly confident" that the company will to meet its "ambitious mid-term targets."
BofA also noted that Abcam's founder and former CEO Jonathan Milner and Starboard Value have become increasingly engaged investors, "which is likely to generate further upside potential."
Milner has been pushing to be elected executive chairman and for the removal of three directors. An extraordinary general meeting has been scheduled for July 12 to take up the matter.
"It's unclear where this activism will lead, but even without dramatic changes, we think Adcam has found its footing and is demonstrating improved performance," wrote the analysts.
BofA raised its price target on Abcam to $25.
On Friday, Abcam disclosed that several parties have approached the company about a possible takeover amid its ongoing board battle.
More on Abcam:
Abcam jumps after disclosing takeover interest from multiple parties
Activist Starboard Value accumulates stake in British biotech Abcam - report
Abcam founder Jonathan Milner calls for extraordinary general meeting
Abcam: Nosebleed Valuations, Flat Growth Profile Justify Hold Rating
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BofA ups Abcam to buy, citing investor activism, improved performance