Truist Financial analyst Nicole Germino downgraded the rating on Fusion Pharmaceuticals (FUSN – Research Report) to a Hold today, setting a price target of $21.00.
Nicole Germino has given her Hold rating due to a combination of factors surrounding the recent corporate developments at Fusion Pharmaceuticals. Primarily, the decision to downgrade from a Buy rating to a Hold is informed by Fusion’s announced acquisition by AstraZeneca. Germino adjusted the price target to $21, factoring in the cash per share offer and an additional contingent value rights (CVR) payment, which together represent a significant premium over the previous market closing price. This reassessment points to a belief that the stock’s current trajectory will closely align with the acquisition price, thus limiting the potential for market-driven growth or decline in the near term.
The report indicates there is little expectation for a competing bid to emerge that could drive the stock price higher, which supports the Hold rating. Additionally, the transaction is anticipated to complete in the second quarter of 2024, assuming all regulatory and shareholder approvals are met. With the acquisition likely to proceed smoothly, the Hold rating reflects a position that the stock will trade around the offered acquisition price, rather than being influenced by the company’s operating fundamentals or broader market fluctuations.
In another report released today, Leerink Partners also downgraded the stock to a Hold with a $21.00 price target.
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Fusion Pharmaceuticals (FUSN) Company Description:
Fusion Pharmaceuticals Inc is a clinical stage bio-pharmaceutical company focused on developing alpha therapeutics for curing cancer.
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