0R15 8884.0068 1.4156% 0R1E 9171.0 0.0% 0M69 None None% 0R2V 255.5 0.3929% 0QYR 1619.0 0.0% 0QYP 434.5 -0.344% 0RUK None None% 0RYA 1600.0 4.5752% 0RIH 195.2 1.3763% 0RIH 195.2 1.3763% 0R1O 225.5 9877.8761% 0R1O None None% 0QFP None None% 0M2Z 255.0 0.2457% 0VSO 33.3 -6.4738% 0R1I None None% 0QZI 596.0 0.0% 0QZ0 220.0 0.0% 0NZF None None% 0YXG 236.3943 1.5483%
Abcam PLC (LON: ABC) – Aims to deliver revenue ranging from £425 million to £500 million by 2024
Abcam PLC (LON: ABC) is an FTSE AIM UK 50 Index listed multinational Life Sciences Company, which produces and markets protein research agents and tools to assist life science researchers and clinical communities. The Company was founded in 1998 and headquartered in Cambridge, UK. Moreover, ABC’s products include a diverse range of antibodies and protein research tools used by researchers critical for drug discovery and diagnostics.
Furthermore, the key clients of ABC are researchers and scientist in academic institutions, pharmaceutical & biotechnology companies, research institutes and diagnostic companies. Abcam sells its products in around 130 countries. Presently, the Company is serving more than 750,000 customers all around the globe.
(Source: Company presentation)
Growth Prospects and Risk Assessment
(Source: Company presentation)
Key Risks
Subsequently, we will analyse the Key Fundamental Statistics & Key Shareholders Statistics of Abcam PLC.
T.Rowe Price Associates, Inc is the most significant shareholder as it holds nearly 20.58 million shares as of 31 March 2021.
Recent Developments
On 19 May 2021, ABC updated that Lady Louise Patten got retired from her role as a Senior Independent Director and Chair of the Remuneration Committee. Moreover, Giles Kerr would replace her as Senior Independent Director effective from the same day, and Mara Aspinall would chair the Remuneration Committee in the interim.
H1 FY21 Financial Highlights (for the six months ended 31 December 2020, as of 08 March 2021)
(Source: Company result)
Financial Ratios (H1 FY21)
Share Price Performance Analysis
(Source: Refinitiv, Thomson Reuters)
On 20 May 2021, at 09:47 AM GMT, ABC’s shares were trading at GBX 1,409.00, up by around 0.50% from the previous day closing price. Stock 52-week High and Low were GBX 1,740.00 and GBX 1,142.00, respectively.
On the weekly chart, the stock is trading above an ascending channel pattern for more than a year and currently getting support from the lower band of the pattern at the GBX 1,350 level, indicating the possibility of an upside reversal.
In the last five years, ABC’s stock price had delivered a positive return of ~123.97%, while the FTSE AIM UK 50 index (benchmark index) had produced a return of about 62.33%, and FTSE All-Share Pharmaceuticals & Biotechnology (benchmark sector) index had generated a return of about 36.69%.
Valuation Methodology: Price/Earnings Approach (NTM) (Illustrative)
Business Outlook Scenario
The Company remained optimistic regarding the accelerated progress of Covid-19 vaccinations & pandemic control and shown confidence that it would gradually lead to a return to full activity in labs. Moreover, ABC had demonstrated rising demand in the life sciences market well supported by increasing public funding and focus on clinically relevant biologics. The Company highlighted that it would continue to generate lucrative returns from the investments with a high return on capital employed and achieve operational excellence. Moreover, ABC develops most products aiming at high gross margins. Furthermore, ABC had revised its revenue outcome to be ranging from £425 million to £500 million for calendar 2024 at current exchange rates. Overall, the Company would provide additional information when demand and laboratory activities would return to normal levels.
(Source: Company presentation)
Considering the positive outlook of the global antibody market, strong liquidity profile, strong revenue growth, increased commercialization of antibodies, robust profitability, and support from the valuation as done using the above method, we have given a “BUY” recommendation on Abcam at the current price of GBX 1,409.00 (as on 20 May 2021 at 09:47 AM GMT), with lower-double digit upside potential based on 70.36x Price/NTM Earnings (approx.) on FY22E earnings per share (approx.).
*All forecasted figures and Peer information have been taken from Refinitiv, Thomson Reuters.
*The dividend yield is subject to change as per the stock price movement.
Disclaimer
References to ‘Kalkine’, ‘we’, ‘our’ and ‘us’ refer to Kalkine Limited.
This website is a service of Kalkine Limited. Kalkine Limited is a private limited company, incorporated in England and Wales with registration number 07903332. Kalkine Limited is authorised and regulated by the Financial Conduct Authority under reference number 579414.
The article has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. No advice or information, whether oral or written, obtained by you from Kalkine or through or from the service shall create any warranty not expressly stated. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation.
Kalkine does not offer financial advice based upon your personal financial situation or goals, and we shall NOT be held liable for any investment or trading losses you may incur by using the opinions expressed in our publications, market updates, news alerts and corporate profiles. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. Kalkine’s non-personalised advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested.