RBC Capital Starts Avid Bioservices (CDMO) at Outperform

RBC Capital analyst Sean Dodge initiates coverage on Avid Bioservices (NASDAQ: CDMO) with a Outperform rating and a price target of $21.00.

The analyst commented, "Avid is a CDMO singularly focused on large molecules, which is one of the faster-growing drug manufacturing sub-markets. Its wide spectrum of capabilities and track record of regulatory and operational excellence are key differentiators and coupled with two ongoing capacity expansions, we believe, should more than triple its revenue over the next ~4 years. Further, with capacity utilization being a primary driver of profitability, this new revenue should come at relatively high incremental margins, helping drive EBITDA growth well beyond that of revenue. Our $21 PT is supported by our DCF analysis of this future FCF potential."

For an analyst ratings summary and ratings history on Avid Bioservices click here. For more ratings news on Avid Bioservices click here.

Shares of Avid Bioservices closed at $17.68 yesterday.

You May Also Be Interested In