Why Cerevel Therapeutics Stock Is Higher
Portfolio Pulse from Erica Kollmann
Cerevel Therapeutics Holdings, Inc. (NASDAQ:CERE) shares have risen after AbbVie Inc. (NYSE:ABBV) announced plans to acquire Cerevel for approximately $8.7 billion, or $45 per share in cash. The deal is expected to close in mid-2024. Following the announcement, analysts from Cantor Fitzgerald and Piper Sandler downgraded CERE from Overweight to Neutral, adjusting their price targets to $45. CERE's trading volume surged, with shares trading at $41.53, up more than 12%.
December 07, 2023 | 5:05 pm
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POSITIVE IMPACT
Cerevel Therapeutics' stock has risen due to AbbVie's acquisition announcement. Analysts have downgraded the stock to Neutral but raised price targets to $45, aligning with the acquisition offer.
The acquisition announcement by AbbVie is a significant positive catalyst for CERE's stock price in the short term, as it provides a clear acquisition price. The analyst downgrades reflect a transition to a neutral position now that an acquisition price has been set, which limits the upside potential from current levels.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100
NEUTRAL IMPACT
AbbVie Inc. plans to acquire Cerevel Therapeutics for $8.7 billion. The acquisition is expected to close in mid-2024, and it may impact AbbVie's financials and strategic positioning.
While the acquisition is a strategic move for AbbVie, the short-term impact on its stock price may be neutral as the market digests the news and evaluates the financial and strategic implications of the deal.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80