Embecta price target lowered to $11 from $18 at BofA

BofA lowered the firm’s price target on Embecta (EMBC) to $11 from $18 and keeps an Underperform rating on the shares. The firm notes the company’s Q3 revenue of $296M was $17M better than Street’s $278M driven by ordering timing benefit from distribution stocking ahead of July 4th holiday, incremental stocking related to brand transition and $7M favorable pricing driven by year-to-date rebate reserve adjustments in the U.S. In Q4, Embecta expects revenues to step down to $265M as order timing benefit reverses, FX to be a $3M incremental h/w and China revenues decline quarter-over-quarter. BofA remains bearish on the stock as it does not see much revenue growth.