KeyBanc maintains Absci stock Overweight rating, $5 target

Published 24/03/2025, 11:22
KeyBanc maintains Absci stock Overweight rating, $5 target

On Monday, KeyBanc Capital Markets reiterated its Overweight rating and a $5.00 price target for Absci Corp. (NASDAQ:ABSI), following the company’s recent fourth-quarter business update. Currently trading at $3.01, the stock has seen a 14.89% gain year-to-date, though InvestingPro data shows significant volatility with analyst targets ranging from $5 to $13. Absci, which specializes in drug discovery and development, continues to progress with its diverse internal pipeline.

ABSI’s latest update showcased the ongoing development of ABS-201, a promising antibody for treating androgenic alopecia, which affects both men and women. This potential treatment is currently in IND-enabling studies, with Phase 1 trials expected to commence in early 2026. According to InvestingPro analysis, the company maintains a strong liquidity position with a current ratio of 4.67 and more cash than debt on its balance sheet, supporting its strategy to develop ABS-201 through later-stage clinical trials and proof of concept internally. The company aims to retain maximum value given the program’s strong data, clear development path, and significant market potential, estimated at 80 million patients.

In addition to ABS-201, Absci is advancing ABS-101, a TL1A antibody, with plans to initiate Phase 1 clinical studies in the first half of 2025 and an interim readout slated for the second half of the same year. The company is actively seeking partners for this program and is developing a bispecific antibody that incorporates its TL1A antibody. This initiative is part of Absci’s efforts to attract interest from large pharmaceutical companies, particularly for its capability to create antibodies that target the challenging gp120 caldera region in HIV, which could lead to the development of a universal neutralizing HIV antibody.

Furthermore, ABS-301, an antibody aimed at an undisclosed immuno-oncology target, has shown a potent anti-tumor response in its first in vivo target validation study, reinforcing the potential for further development. Absci indicated that it might seek a partnership for this program before it enters clinical trials.

Lastly, the company provided an update on ABS-501, an anti-HER2 antibody designed using AI, intended for breast cancer treatment. Preclinical data has confirmed novel epitope interactions and an affinity that is comparable or superior to existing treatments like trastuzumab. The antibody has also demonstrated efficacy against trastuzumab-resistant tumors that express wild-type HER2, along with good developability characteristics. With a market capitalization of $383.27 million, ABSI currently trades slightly above its InvestingPro Fair Value. Investors seeking deeper insights can access the comprehensive Pro Research Report, which includes detailed analysis of ABSI’s financial health, market position, and growth prospects.

In other recent news, Absci Corp reported a significant shortfall in its fourth-quarter 2024 earnings, with revenue reaching only $700,000 compared to the forecasted $1.8 million. Earnings per share also fell short, recording -0.25 against the expected -0.22. Despite the revenue miss, the company continues to focus on innovation, as evidenced by a notable increase in research and development expenses, which rose to $18.4 million from the previous year’s $12.3 million. Absci secured an additional $40 million through strategic collaborations, extending its cash runway into 2027. H.C. Wainwright maintained its Buy rating on Absci, setting a price target of $7.00, highlighting the company’s progress in developing AI-designed antibodies, including ABS-101 for inflammatory bowel diseases and ABS-201 for androgenic alopecia. The firm anticipates Phase 1 studies for ABS-101 to commence in the first half of 2025, with interim results expected later that year. Additionally, Absci’s partnership potential and pipeline advancements position it for significant market opportunities in the biotechnology sector.

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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