Intercept Pharmaceuticals, a biotech group, has been downgraded to a hold rating by Canaccord Genuity following the news of its acquisition by Alfasigma for $19 per share in cash. Canaccord believes that this deal is the best possible outcome for Intercept, considering that its drug Oclavia could potentially face tough competition in the near future. The downgrade is seen as a “win-win” for the company and investors, as the $19 per share price is only slightly below Canaccord’s 12-month price target of $20. Therefore, Canaccord has adjusted its rating to hold with a price target of $19.
The acquisition by Alfasigma has led to Canaccord Genuity downgrading Intercept Pharmaceuticals, citing it as the best outcome for the company. Canaccord believes that Intercept’s drug Oclavia might face challenging competition in the coming years, making the deal a wise decision. Despite the downgrade, Canaccord views the acquisition as a positive move for both Intercept and its investors. Canaccord had previously set a 12-month price target of $20 per share, and with the acquisition offering $19 per share, the rating has been reduced to hold, aligning with the market price.
In the wake of Intercept Pharmaceuticals agreeing to be acquired by Alfasigma for $19 per share, Canaccord Genuity has downgraded the biotech group’s rating to hold. This decision comes as Intercept’s drug Oclavia faces potential competition in the future, making the acquisition a preferable outcome for the company. Canaccord considers the $19 per share price to be just slightly below its 12-month price target of $20, resulting in the adjustment of the rating. Despite the downgrade, the deal is seen as advantageous for Intercept and its investors, reinforcing its position in the market.