On Thursday, Societal CDMO, Inc. (NASDAQ: SCTL), a contract development and manufacturing organization, received a rating downgrade by investment firm William Blair.
The company's stock was moved from Outperform to Market Perform, reflecting a shift in expectations following recent corporate developments.
The downgrade comes in light of challenges Societal CDMO has faced over the past few years, as well as recent changes to its board of directors. These factors have fueled speculation that the company may be headed towards a buyout. William Blair noted that a takeover has appeared to be the most probable outcome for Societal.
Despite a potential premium on the buyout price, there is concern that long-term investors might be disappointed with the offer. However, William Blair analyst anticipates that there will not be substantial opposition to impede the completion of the deal or the likelihood of competing bids emerging.
The downgrade decision was influenced by the current after-hours trading price of Societal's shares, which stood at $1.07, indicating a roughly 3% spread. This assessment led to the conclusion that a Market Perform rating is now more appropriate than the previous Outperform rating.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.