Street Calls of the Week
Investing.com - Guggenheim raised its price target on Abivax (NASDAQ:ABVX) to $150.00 from $101.00 on Friday, while maintaining a Buy rating on the stock following positive feedback on the company’s ulcerative colitis treatment. The stock, which has surged over 900% in the past year, is trading near its 52-week high of $93.77. InvestingPro data shows strong analyst consensus with multiple additional price targets available to subscribers.
The price target increase comes after Guggenheim attended the UEGW conference in Berlin and hosted an investor dinner with Abivax’s management team. Key opinion leaders (KOLs) provided highly positive feedback on obefazimod, the company’s oral miR-124 inducer being developed for ulcerative colitis. The company, currently valued at $7.08 billion, is focusing on this development despite reporting a net loss of $230 million in the last twelve months.
Guggenheim noted that while long-term maintenance data is still needed and expected in the second quarter of 2026, KOLs unanimously agreed that obefazimod’s use and adoption is likely to be broad, ranging from front-line to later-line usage.
Based on confidence in the drug’s safety and long-term efficacy, Guggenheim now models $5 billion in risk-adjusted peak sales for obefazimod in inflammatory bowel disease (IBD). The firm views obefazimod as "one of the most valuable assets in IBD" that would provide a synergistic profile to established players in the IBD space.
Guggenheim has designated Abivax as its "Best Idea," reflecting strong conviction in the company’s prospects as obefazimod is positioned to potentially become "the cornerstone oral treatment for UC."
In other recent news, Abivax has announced positive results from its Phase 3 trial for obefazimod in treating ulcerative colitis, showing clinically meaningful improvements across all endpoints. This announcement follows the company’s presentation of its Phase 3 trial results at the United European Gastroenterology Congress in Berlin, which highlighted both the efficacy and safety of the treatment. Analysts have responded positively to these developments, with Leerink Partners raising its price target for Abivax to $115, citing increased worldwide revenue estimates for obefazimod. Similarly, JMP Securities has increased its price target to $114, maintaining a Market Outperform rating, and expects further analyses of the drug’s efficacy in various patient groups. Citizens has also reiterated its Market Outperform rating with a $114 price target, noting the drug’s compelling safety profile. These analyst updates reflect optimism in the potential of obefazimod, especially following the supportive efficacy analysis presented at the United European Gastroenterology Week.
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