Novacyt: Oddo downgrades stock, cuts target price

(CercleFinance.com) - After "active" negotiations with the UK Department of Health and Social Care (DHSC) regarding the extension of its COVID test kit supply contract, Novacyt failed in negotiations, Oddo reports.


The broker believes that this bad news threatens to cut Novacyt's revenue in half and could lead to legal risk, due to potential litigation with the DHSC.

As a result, its analysts have lowered their forecasts by almost 40% for sales and 50% for EBITDA.

In these conditions, Oddo has downgraded its rating on Novacyt shares from "neutral" to "underperform" and has reduced its corresponding target price to 4.1 euros, from 8.1 euros previously.

The market seems to think otherwise - at least today - the share is currently up over 3.5%.


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