Last Updated: 17 Sep 2024
Executive Summary
Avid Bioservices Inc. (CDMO) is a contract manufacturing and development organization that provides commercial manufacturing and clinical process development services for biopharmaceutical pharmaceuticals. The company has a market capitalization of $711.95 million and is headquartered in Tustin, California.
Company Overview
Avid Bioservices was founded in 2001 and has since become a leading provider of contract manufacturing and development services for the biopharmaceutical industry. The company's services include cell culture, fermentation, purification, and fill-finish. Avid Bioservices has a strong track record of success, having successfully completed over 100 projects for clients.
Fundamental Analysis
Avid Bioservices' financial performance has been mixed in recent years. The company's revenue has grown steadily, but its profitability has declined. In the most recent quarter, the company reported a net loss of $7.7 million on revenue of $35.6 million.
Avid Bioservices' financial ratios are also mixed. The company's price-to-sales ratio is 5.0, which is in line with the industry average. However, its price-to-book ratio is 12.14, which is significantly higher than the industry average. This suggests that the company's stock may be overvalued.
Technical Analysis
Avid Bioservices' stock price has been trending down in recent months. The stock is currently trading at $11.29, which is below its 50-day and 200-day moving averages. The stock's technical indicators are also bearish, suggesting that the stock could continue to decline in the short term.
Short Term Outlook
The short-term outlook for Avid Bioservices is negative. The company's financial performance has been mixed, and its stock price has been trending down. The stock's technical indicators are also bearish, suggesting that the stock could continue to decline in the short term.
Long Term Outlook
The long-term outlook for Avid Bioservices is more positive. The company has a strong track record of success and is well-positioned to benefit from the growing demand for biopharmaceutical manufacturing services. The company's stock could be a good investment for long-term investors who are willing to tolerate some short-term volatility.
Analyst Recommendations
The majority of analysts who cover Avid Bioservices have a buy rating on the stock. The average analyst target price is $13.50, which represents a potential upside of 19.6% from the current price.
