AbCellera price target lowered to $4 from $5 at KeyBanc

KeyBanc lowered the firm’s price target on AbCellera (ABCL) to $4 from $5 and keeps an Overweight rating on the shares. The firm believes there are several key themes that should play out this year for the healthcare technology sector. First and foremost, the continued adoption of AI in technologies across healthcare, life sciences, and drug discovery. Secondly, KeyBanc thinks hospital budgets should be healthier this year given its proprietary card data that tracks procedure volumes/elective surgeries. Finally, while the firm believes the impact of rising interest rates on the equities markets had an impact on the IPO market for the last several years, it sees a healthier M&A and IPO market potentially re-emerging in the next 12 months given the new Trump presidency and “normalization”/market acceptance of current interest rate levels.