Avid Bioservices adds 34% after Q3 beat as KeyBanc upgrades
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- Avid Bioservices (NASDAQ:CDMO) gained ~34% on Tuesday to reach the highest level in over four months after the contract manufacturer reported better-than-expected financials for Q3 FY23, prompting KeyBanc to upgrade the stock.
- Tustin, California-based company posted $38.0M revenue for the quarter, indicating ~21% YoY growth with the addition of $67M worth of net new business orders that has expanded its backlog by ~26% YoY to $176M.
- While net income contracted ~80% YoY to $461K, driven by $2.1M of income tax expense, Avid (CDMO) said it remains on track to reach its fiscal year 2023 revenue guidance of $145M – $150M.
- Chief Executive Nick Green “is operating the business like a home-country Premier League team,” KeyBanc analyst Paul Knight wrote after the results, upgrading the stock to Overweight from Sector Weight.
- Knight, with a $20 price target, notes that Avid’s (CDMO) order build of $67M exceeded the firm’s expectations indicating ~30% YoY growth, while its revenue capacity of $400M stood ahead of KeyBanc’s FY25 estimate of $240M.
- Avid (CDMO) has the potential to generate ~200% upside, according to Seeking Alpha’s Fund Letter Stock Ideas.