Canaccord holds Akoya stock rating, maintains $3.50 target

On Monday, Canaccord Genuity maintained its Hold rating on Akoya Biosciences Inc (NASDAQ:AKYA) shares, with a steady price target of $3.50. According to InvestingPro data, analyst targets for AKYA range from $2.40 to $5.00, with three analysts recently revising their earnings estimates upward. Canaccord Genuity’s analysis followed Akoya’s fourth-quarter results for the year 2024, which were released after the market closed on the previous Monday, March 17, and met both the firm’s and the FactSet consensus estimates. The company’s revenue decline in the fourth quarter was attributed primarily to a reduction in instrument revenue, a result of capital purchasing constraints, with total revenue falling 15.5% year-over-year.

Despite the challenges, Akoya’s instrument placements matched expectations. The company also reported a sequential decrease in cash burn and nearly reached its goal of cash flow breakeven in the fourth quarter of 2024. InvestingPro analysis shows the company maintains a healthy current ratio of 2.61, indicating liquid assets exceed short-term obligations, though rapid cash burn remains a concern. Canaccord Genuity noted these financial improvements while also acknowledging the broader issues that affected Akoya’s performance throughout the year.

Akoya Biosciences did not issue financial guidance for 2025, citing the ongoing acquisition process by QTRX. However, Canaccord Genuity has slightly raised its own estimates for Akoya in 2025. The firm pointed out that while the merger with QTRX holds potential value, the immediate and medium-term benefits may be challenging to realize. This uncertainty, particularly concerning the National Institutes of Health (NIH) funding and its impact on Akoya’s academic research business, could continue to affect the company’s stock performance.

Investors, especially those holding shares of QTRX, seem skeptical about the synergies expected from the Akoya-QTRX merger. While the stock has shown a significant 9% return over the past week, InvestingPro data reveals a challenging six-month decline of nearly 40%. Canaccord Genuity suggests that Akoya’s share price may stay subdued until the shareholder vote on the merger takes place or until there are changes in the merger circumstances. For deeper insights into Akoya’s financial health and detailed analysis, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, Akoya Biosciences announced significant progress in its merger with Quanterix (NASDAQ:QTRX) Corporation, as the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act expired. This regulatory milestone advances the merger process, with completion anticipated in the second quarter of 2025. Piper Sandler recently downgraded Akoya Biosciences’ stock from Overweight to Neutral, adjusting the price target to align with the proposed acquisition value. The merger, an all-stock transaction, is projected to create an integrated solution for protein biomarker detection, enhancing disease diagnostics.

Quanterix aims to leverage Akoya’s spatial biology expertise, with the merger expected to generate $40 million in annual cost synergies by 2026. However, Kent Lake PR LLC, a significant Quanterix shareholder, opposes the merger, arguing it undervalues Quanterix and could impair shareholder value. The firm suggests the merger might lead to financial challenges for Quanterix, reducing its cash runway and potentially necessitating future equity raises. Despite these concerns, Quanterix plans to proceed with the merger, viewing it as a strategic move to expand technology offerings in high-growth markets like neurology and oncology.

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