On Monday, Morgan Stanley (NYSE:MS) adjusted its outlook on Akoya Biosciences Inc (NASDAQ:AKYA), reducing the price target to $4.00 from the previous $8.00. Despite the lowered target, the firm maintained an Overweight rating on the stock. The revision reflects concerns over several factors impacting the company's performance.
The decision to lower the price target was influenced by a miss on the company’s capital expenditure, challenges during the transition to COE manufacturing, and delays in achieving pharmaceutical milestones. Consequently, Akoya Biosciences has revised its 2024 guidance downward, now anticipating a heavier financial performance in the second half of the year.
Morgan Stanley's assessment also cited limited visibility on macroeconomic recovery, a product mix heavily reliant on instruments, an evolving competitive landscape, and balance sheet flexibility as reasons for the need for patience among investors. These factors are expected to play a role in the company's ability to realize its potential upside.
The Overweight rating indicates that Morgan Stanley still sees Akoya Biosciences as a stock with a better return prospect relative to the broader market or its sector, despite the challenges outlined. The firm suggests that while immediate upside may be limited, there remains confidence in the long-term value of the company.
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