Barclays initiates coverage on Abivax stock with Overweight rating

Investing.com - Barclays initiated coverage on Abivax (NASDAQ:ABVX) with an Overweight rating and a price target of $142.00 on Monday, joining other analysts who set targets ranging from $101 to $150 for the biotech company, which currently holds a market capitalization of $7.44 billion.

The research firm cited the company’s development of a novel oral molecule for ulcerative colitis (UC) and Crohn’s disease (CD), describing them as "two large, chronic indications with high unmet need."

Abivax stock has surged approximately 1,577% over the past six months, primarily driven by its 8-week induction data in ulcerative colitis released in July, compared to a 24% gain for the S&P 500 during the same period.

Despite this significant rally, Barclays believes the stock remains undervalued based on the opportunity for a first-in-class oral molecule with biologic-like clinical efficacy in UC and CD.

The firm sees additional upside potential from Abivax’s first-in-class miR-124 mechanism, with positive maintenance data in UC and top-line results in CD anticipated in the second half of 2026, which Barclays believes will attract strategic interest.

In other recent news, Abivax has made significant strides with its drug candidate obefazimod, intended for treating ulcerative colitis. The company announced positive results from its Phase 3 trial, showing clinically meaningful improvements in patients with moderate-to-severe ulcerative colitis. These results were presented at the United European Gastroenterology Congress in Berlin, highlighting both the efficacy and safety of the treatment. In light of these developments, Guggenheim has raised its price target for Abivax to $150, maintaining a Buy rating, following positive feedback from key opinion leaders. Similarly, Leerink Partners increased its price target to $115, citing enhanced revenue estimates for obefazimod in both ulcerative colitis and Crohn’s disease. Citizens also reiterated its Market Outperform rating with a $114 price target, emphasizing the drug’s compelling safety profile. These updates reflect growing confidence among analysts in Abivax’s potential to impact the inflammatory bowel disease market.

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