Cantor upgrades PacBio on attractive entry point after selloff

Cantor Fitzgerald upgraded PacBio to Overweight from Neutral with a price target of $11, down from $14. The analyst cites valuation for the upgrade following the share selloff since the summer. Cantor downgraded PacBio at the beginning of this year due to valuation as it believed a strong 2023 in terms of revenue growth was fully baked into the shares, the analyst tells investors in a research note. The firm now believes this has largely played out with 55% revenue growth guided for the year and the shares retreating to $7. While short-term investors may continue to pressure shares given the company is forecasting a challenging year in 2024, current levels offer an attractive entry point for investors who believe in the longer term story, says Cantor.