What happens to stocks if AI loses momentum?
Investing.com - Needham has lowered its price target on Absci Corp. (NASDAQ:ABSI) to $8.00 from $9.00 while maintaining a Buy rating on the stock. Currently trading at $2.97, ABSI sits well below its 52-week high of $6.33, though analyst consensus remains bullish with an average target suggesting significant upside potential.
The adjustment follows Absci’s second-quarter 2025 financial results reported on Tuesday and accounts for dilution from a recent financing round. InvestingPro data reveals the company holds more cash than debt on its balance sheet, though it’s quickly burning through cash reserves.
Needham noted that initial results for ABS-101 in healthy volunteers remain on track for the second half of 2025.
The research firm indicated that a positive readout would provide initial proof of concept for Absci’s broader platform and potentially make ABS-101 an attractive target for large pharmaceutical companies.
Despite the price target reduction, Needham maintained its Buy rating on the biotechnology company’s stock.
In other recent news, Absci Corp reported disappointing second-quarter 2025 earnings, with both earnings per share and revenue falling short of expectations. The company’s EPS was recorded at -$0.24, slightly below the projected -$0.21, resulting in a 14.29% negative surprise. Revenue also missed the mark significantly, coming in at $600,000 compared to the anticipated $1.39 million, representing a 56.83% shortfall. These figures highlight the challenges Absci Corp is currently facing in meeting market expectations. Despite the earnings miss, the company’s stock showed resilience in after-hours trading. Investors and analysts will be closely monitoring Absci Corp’s performance in the coming quarters to assess its financial health.
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