Absci stock rating initiated at Overweight by JPMorgan on AI platform potential

Published 02/10/2025, 06:54
Absci stock rating initiated at Overweight by JPMorgan on AI platform potential

Investing.com - JPMorgan initiated coverage on Absci Corp. (NASDAQ:ABSI) with an Overweight rating on Thursday, joining other bullish analysts who have set price targets ranging from $5.89 to $10.00. The stock has shown strong momentum, gaining over 18% in the past week.

The investment bank highlighted Absci’s AI-driven platform for developing novel therapeutics, noting its computational expertise has "attractive potential in changing how new therapeutics are found." According to InvestingPro data, the company maintains a healthy balance sheet with more cash than debt and a current ratio of 4.39, though it’s currently experiencing rapid cash burn.

JPMorgan identified that Absci is approaching a major inflection point, with the first interim clinical data for its TL1A/’101 portfolio expected later this year from healthy volunteer trials.

The bank views the TL1A target as derisked and strategically important for attracting partnerships while providing validation for Absci’s underlying technology platform.

Beyond the lead program, JPMorgan sees promise in Absci’s PRLR-targeted ’201 therapy for androgenetic alopecia, citing encouraging early preclinical evidence and competitive read-throughs for this underserved market. For deeper insights into Absci’s financial health and growth prospects, InvestingPro subscribers can access the comprehensive Pro Research Report, featuring detailed analysis of the company’s metrics and future potential.

In other recent news, Absci Corp reported its second-quarter 2025 earnings, which fell short of expectations. The company announced earnings per share of -$0.24, slightly missing the forecasted -$0.21. Revenue was significantly lower than anticipated, coming in at $600,000 compared to the expected $1.39 million, representing a 56.83% shortfall. Following these results, Needham adjusted its price target for Absci to $8.00 from $9.00, maintaining a Buy rating, citing recent dilution from a financing round as a factor. Additionally, Absci has strengthened its scientific advisory board with the addition of dermatologists Dr. Rodney Sinclair and Dr. David Goldberg. These experts will guide the development of ABS-201, an AI-designed therapeutic antibody for androgenetic alopecia. Phase 1/2a clinical trials for ABS-201 are planned to begin in early 2026, with initial proof-of-concept data expected later that year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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