Analyst David Martin PhD from Bloom Burton maintained a Buy rating on Microbix Biosystms and keeping the price target at C$0.50.
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David Martin PhD has given his Buy rating due to a combination of factors pointing to an operational and financial inflection. In his view, the latest quarterly results, while showing a year-over-year revenue decline tied to known issues at two major customers, also revealed a solid sequential rebound that supports the thesis that earnings have likely already troughed and are now beginning to recover.
He also highlights that the earnings beat was primarily driven by antigen sales, which, despite a sharp annual decline from weaker demand in China, grew strongly on a quarter-over-quarter basis. Martin expects the temporary drag from Chinese inventory digestion to fade over time, while Microbix continues broadening its antigen customer base, which together underpin his confidence in renewed organic growth and justify maintaining a Buy recommendation on the shares.
Martin PhD covers the Healthcare sector, focusing on stocks such as Microbix Biosystms, Zymeworks, and Medicenna Therapeutics Corp. According to TipRanks, Martin PhD has an average return of 17.2% and a 51.05% success rate on recommended stocks.