Exact Sciences, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Daniel Brennan from TD Cowen downgraded the rating on the stock to a Hold and gave it a $105.00 price target.
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Daniel Brennan has given his Hold rating due to a combination of factors surrounding the recent acquisition announcement by ABT. The acquisition price of $105 per share prompted an adjustment in the price target from the previous $90, reflecting the new valuation of Exact Sciences. However, with the stock trading close to this acquisition price, the potential for further upside is limited, leading to the Hold rating.
Additionally, Brennan notes the low likelihood of a competing bid from other major companies in the industry. The size of the deal and the specific business model of Exact Sciences make it an unlikely target for a higher offer from other potential acquirers. These considerations, combined with the current trading price, justify the decision to downgrade the stock from Buy to Hold.
In another report released yesterday, Craig-Hallum also downgraded the stock to a Hold with a $105.00 price target.