In a report released on July 25, Sean Laaman from Morgan Stanley maintained a Buy rating on AbSci, with a price target of $6.40.
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Sean Laaman has given his Buy rating due to a combination of factors that highlight AbSci’s potential for future growth and value creation. The recent $50 million public offering is expected to provide the company with the necessary capital to advance its internal pipeline and invest in its Drug Creation platform, which are crucial for its long-term strategic goals. This financial boost does not alter the anticipated timeline for potential partnerships related to their TL1A asset, ABS-101, which is a promising development given the interest from large biopharma companies lacking similar assets in their pipelines.
Furthermore, the upcoming interim Phase I data for ABS-101 in the second half of 2025 is seen as a potential turning point for securing partnerships, which would offer non-dilutive capital and extend the company’s financial runway. Additionally, AbSci’s development of ABS-201, a preclinical antibody for treating androgenetic alopecia, underscores the company’s innovative approach, leveraging AI in drug design. These strategic initiatives and the adjusted price target of $6.40, following the updated share count and cash infusion, underpin Laaman’s positive outlook on AbSci’s stock.