Analyst Swayampakula Ramakanth of H.C. Wainwright maintained a Buy rating on ImmunoPrecise Antibodies, retaining the price target of $5.00.
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Swayampakula Ramakanth has given his Buy rating due to a combination of factors that highlight ImmunoPrecise Antibodies’ strategic positioning and financial health. The recent divestment of the Dutch facility for $12 million is a significant move that not only extends the company’s financial runway by at least four quarters but also allows for potential margin expansion. The proceeds from this sale provide a non-dilutive financial boost, enabling the company to focus on its core operations in Canada, where there has been a notable increase in orders.
Furthermore, the Canadian facility, which has been operational since the company’s inception, is showing promising growth with an 83% increase in quarterly orders and a 93% rise in new client orders during the last quarter of FY25. This suggests that any revenue loss from the Dutch facility could be compensated by the Canadian operations, which likely have a higher operational margin. The divestment also streamlines the company’s geographic footprint, allowing it to concentrate resources on expanding its AI business, aligning with its long-term strategic goals. These factors, combined with a robust valuation analysis, underpin the Buy rating and a 12-month price target of $5.
In another report released on July 31, Benchmark Co. also maintained a Buy rating on the stock with a $3.00 price target.