Deutsche Bank downgraded Oxford BioMedica PLC (LSE:OXB), the cell and gene therapy specialist, to 'hold' from 'buy' and cut its target price to 595p from 800p after slower revenue conversion and programme delays weakened its outlook.
The bank’s revised target represents a 20.7% premium to Oxford BioMedica’s last closing price of 493p, but Deutsche Bank said the burden of proof had shifted towards execution.
Demand appeared healthy, but delays to programmes and operational issues at the company’s Durham site materially reduced expectations for the 2026 financial year, Deutsche Bank analyst Kane Slutzkin said.
The broker also highlighted weaker visibility ahead of the company’s capital markets day in June, increasing uncertainty around the timing and delivery of future growth.
Deutsche Bank cut its revenue estimates for the 2026 and 2027 financial years by about 20%, with a materially larger impact on earnings before interest, tax, depreciation and amortisation, known as EBITDA, and earnings per share.
The bank lowered its scenario-based target price to 595p from 800p, reflecting the reduced earnings outlook and greater execution risk.
Oxford BioMedica’s valuation has become more supportive after the share-price decline, with the stock trading at about three times enterprise value to sales, a measure comparing a company’s total value with its revenue.
However, Deutsche Bank said the valuation discount was not enough to offset weaker visibility, programme delays and the need for evidence that operational issues could be resolved.
The downgrade leaves the broker waiting for clearer signs of improved execution before taking a more positive view of the shares.
