Analyst Gil Blum of Needham maintained a Buy rating on AbSci, with a price target of $7.00.
Claim 70% Off TipRanks This Holiday Season
- Unlock hedge-fund level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Gil Blum has given his Buy rating due to a combination of factors that highlight AbSci’s strategic focus and potential for growth. The company has decided to concentrate its efforts on the clinical development of ABS-201, a move that is supported by promising preclinical results and early clinical data from competitors. This strategic shift allows AbSci to allocate resources more efficiently, particularly given the decision to halt further development of ABS-101, which did not show sufficient differentiation in its initial clinical data.
Furthermore, AbSci’s decision to pursue ABS-201 for both androgenetic alopecia (AGA) and endometriosis is seen as a cost-effective strategy. By leveraging safety data across these indications, the company can potentially expedite the derisking process for AGA while exploring new opportunities in endometriosis. Although the price target has been adjusted to $7 due to the discontinuation of ABS-101, the focused development on ABS-201 is viewed as a positive step towards achieving long-term success.