www.asterand.com
Asterand plc is the leading global supplier of high quality, well characterized human tissue and human tissue-based research services to drug discovery scientists. Our mission is to provide human tissues and services to accelerate the identification and validation of drug targets and enhance the selection of drug candidates with an increased likelihood of clinical success.
Daniel Stewart still sees 50% upside for Asterand shares, reiterates 'buy'
London-based stockbroker Daniel Stewart issued a note on human tissue and human tissue based services group Asterand (LSE: ATD), saying it still sees 50% upside for the share from the current level. The broker said that Asterand has a strong pipeline of business despite recent changes to buyer behaviour which has led to orders being spread over a longer period than planned.
In its trading update on 15 January, Asterand repeated its previous guidance on the industry’s changing customer behaviour. Among some of its customers, Asterand has noted that larger purchases are being split into smaller units to be bought over time.
The broker noted that contract research organisations world-wide are currently experiencing softer market demand in preclinical services, as pharmaceutical clients reprioritize their drug development pipelines and restructure their operations.
It has revised its target to 24 pence a share from 26p. Daniel Stewart maintains its 'buy' recommendation and still sees approximately 50% upside from current levels.
Asterand last week posted a circular relating to the planned acquisition of BioSeek Inc, which is to be approved by shareholders at a general meeting on 18 February.
The proposed acquisition of BioSeek will be Asterand's first step in its "buy and build" strategy to consolidate leadership in the global human tissue and human tissue based services market. It believes BioSeek is highly complementary to Asterand's business in terms of both products and services offered.
