Bubble or no bubble, this is the best stock for AI exposure: analyst
Investing.com - Jefferies downgraded Exact Sciences (NASDAQ:EXAS) from Buy to Hold on Monday, adjusting its price target to $105.00 from $90.00 following the company’s acquisition by Abbott. The stock has surged over 50% in the past week and is currently trading at $100.90, with InvestingPro data showing the RSI indicates overbought conditions.
The downgrade comes after Exact Sciences’ board approved the acquisition deal, which is expected to complete before the second quarter of 2026 pending shareholder approval in the coming months.
Jefferies set its new price target to match the acquisition price, representing an enterprise value of approximately six times the firm’s 2026 sales estimate for Exact Sciences. This valuation comes as the company trades at a high EBITDA multiple of 191x, though InvestingPro analysis indicates analysts expect the company to become profitable this year after posting losses in the last twelve months.
The research firm, which previously considered Exact Sciences a "top pick," stated that the acquisition premium represents a favorable outcome for Exact Sciences shareholders.
Jefferies does not anticipate competing bids to emerge, citing precedent deal multiples in the sector as a factor in its assessment.
In other recent news, Exact Sciences has been at the center of acquisition discussions, as reports indicate Abbott Laboratories is nearing a deal to acquire the company. This potential acquisition has sparked considerable interest, with Exact Sciences shares experiencing significant activity following the news. UBS has maintained its Neutral rating on Exact Sciences, with a price target of $80, amidst these acquisition reports. Meanwhile, BTIG continues to hold a Buy rating with an $85 price target, highlighting the company’s trading multiples prior to the news. William Blair has reiterated an Outperform rating, noting this isn’t the first time acquisition rumors have surfaced between Exact Sciences and Abbott. Additionally, Quanterix Corporation has announced leadership changes, appointing two former Thermo Fisher Scientific executives to its board. These appointments are part of a governance restructuring aimed at supporting the company’s next growth phase.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.