This updates last week's article AI-Focused Drug Discovery Company, AbCellera, Up 21% W/e June 6th

AbCellera Biologics (ABCL), a constituent in the MunAiMarkets Ai-Focused Drug Discovery Stocks Portfolio, is on a tear, going up 21% the 1st week of June and another 31% the 2nd week ending June 13th. Here's why.

1. Unusually heavy call-option flow on June 11: Over 8,500 ABCL call contracts (more than ten times normal volume) traded on June 11th signaling that speculators were betting on further upside into upcoming data or deal announcements.
2. Hedge funds/institutional investors adding to their stakes in ABCL: 61.42% of the stock is now owned by institutional investors.
3. ABCL added 2 new molecules to clinical trials: These additions suggest ABCL is approaching a potential inflection point:- progress from a platform with promise to one capable of solving real-world medical problems. Such promise gives the pipeline tangible clinical progress and a clear near-term catalyst.

Stock Price Forecast/Rating

The average price target of $8.33 for AbCellera by the 3 professional analysts that follow the company represents a 241% increase in the stock price over the next year and they all rate the company as a "Strong Buy," meaning that the analysts believe ABCL stock is likely to perform very well in the near future and significantly outperform the market.

Editors Note: Keep in mind that these days, stocks trading under $5 per share are considered penny stocks, and that percentage increases for penny stocks look more significant than they may be. When a stock is also a small cap, remember that the risk aspect is high.

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