Oxford Biomedica (OXB) Shares Rose 18.2% Despite Weak Ratings

The Oxford BioMedica plc (LON: OXB) share price has risen 18.22% in the past week despite most analysts downgrading the company and lowering their revenues and loss forecasts. Most analysts now rate the company much lower than before the release of its interim results on 20 September 2023.

The company reported a £0.50 loss per share, marking a significant increase from the £0.27 loss reported in 1H 2022. The company’s H1 revenues also fell to £43.1 million, representing a 33% decline from H1 2022 figures. The company’s net loss of £48.0 million also marked an 88% increase from the first half of 2022.

Additionally, the company’s revenues missed analysts' estimates by 31%, while earnings per share (EPS) missed consensus estimates by 75%. The primary reason for the recent downgrades from the eight analysts covering the company’s stock price is the weak interim H1 results reported by the firm. 

Analysts' consensus estimates indicate that the company will generate £103 million in revenues in 2023, marking a 14% decline compared to the previous year. Analysts also expect the company’s per-share losses to rise to £0.69. After the recent interim results update, investor sentiment has shifted drastically towards the company. 

Before the latest consensus estimates were issued, analysts expected the company to generate revenues worth £133m and £0.54 per share in losses. The analysts also downgraded their price targets to £7.55, representing a 13% decline from the previous figure. 

However, despite the recent analyst downgrades, the Oxford Biomedica (OXB) shares have risen 18.22% over the past week as demand for the shares remains high. The shares have formed a bottoming pattern after the release of the interim results a week ago. 

Despite the weak interim results, the company has attracted buyers, indicating that the number of buyers has outdone the sellers. It remains to be seen whether the rally higher shall continue or if it will fizzle out in the coming days. 

Only time will tell how OXB shares perform, but the company’s outlook for the rest of the year does not look promising. 

The Oxford Biomedica (OXB) share price. 

The Oxford Biomedica (OXB) share price edged 2.69% higher to trade at 296.00p, from Monday’s closing price of 288.25p.