Maravai LifeSciences rallies after BofA upgrades to "buy"

Maravai Lifesciences Holdings

12/12/2023 18:35

** Shares of Maravai LifeSciences  MRVI.O  rise by more than
11% to $5.74, over 1-month high, after BofA Global Research
upgraded drug and vaccine developer to "buy" from "neutral"
  ** Stock on track for biggest daily pct gain since October 30
  ** MRVI's shares last up 10.1% at $5.67, trimming YTD loss to
~60%
  ** MRVI shares have sold off in 2023 as "pandemic-related
sales fell and biopharma spending slowed", giving it an
"attractive valuation for investors and potential strategic
acquirers," says Bofa analysts led by Michael Ryskin
  ** Still, Ryskin slashed his PT to $8 from $10
  ** "MRVI's core, non-COVID business is a relatively high
margin, high consumable/recurring revenue mix platform with
exposures to high growth therapeutic modalities," Ryskin says
  ** Co's scale and business model have led to publicly reported
takeout interest from both potential financial sponsors and
strategic acquirers, he says
  ** Given current enterprise value of ~$1.6 bln, MRVI is within
M&A capacity of a large pool of potential acquirers and co's
margin profile will be accretive to them, Ryskin adds
  ** Median PT of 11 analysts covering MRVI is $8, down from $10
a month ago, and their current recommendation is "buy", per LSEG
data

 (Reporting by Chibuike Oguh in New York)
 ((Chibuike.Oguh@thomsonreuters.com; +332-219-1834; Reuters
Messaging: chibuike.oguh.thomsonreuters.com@reuters.net))