Bank of America downgraded ABAXIS ABAX from Neutral to Underperform and maintained a $40.00 price objective.
Bank of America commented, "ABAX's shares have soared 17% YTD (+6% S&P 500) on better revenue and earnings growth and euphoria over its new distribution relationship with MWI Veterinary Supply that has driven earnings expectations substantially higher. While ABAX should recognize $9 million in revenues from MWI's residual purchase requirements in 4Q, the buy-ins will likely cannibalize some of ABAX's direct business and relationships with regional suppliers, limiting market share gains and earnings upside. We also anticipate lingering challenges for its reference laboratory and human medical segments."
ABAXIS closed at $43.52 on Friday.
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