The shares of contract research organization Syneos Health ( NASDAQ: SYNH ) added ~17% on Monday, reversing a sharp selloff that followed the company's Q3 2022 results on Friday.
Citing lower-than-expected net awards, revenue, and margins as reasons for the underperformance, Syneos ( SYNH ) moved to lower its full-year outlook for revenue and earnings to a range below the consensus.
However, Baird reiterated its Outperform rating on Syneos ( SYNH ), albeit "grudgingly" noting that the company should be worth more than $25 apiece, the level its shares reached on Friday. Still, adjustments to the valuation model prompted the analysts led by Eric Coldwell to lower the price target on the stock to $42 from $80 per share.
"We'd be shocked if financial buyers aren't paying attention, but – if nothing else – this is ripe for activism right now," the team wrote, expecting "poor results" to continue through next year.
Wall Street continues to be bullish on Syneos ( SYNH ) stock, with an average rating of Buy from analysts , while Seeking Alpha's Quant System, which consistently beats the market, rates SYNH as a Strong Sell.
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Why did Syneos Health stock surge today?