Analyst Swayampakula Ramakanth of H.C. Wainwright maintained a Buy rating on ImmunoPrecise Antibodies (IPA – Research Report), retaining the price target of $5.00.
Swayampakula Ramakanth has given his Buy rating due to a combination of factors that highlight ImmunoPrecise Antibodies’ potential for growth. The FDA’s new policy, which encourages the use of AI in drug development and aims to phase out animal testing, is expected to benefit ImmunoPrecise significantly. The company, a contract research organization, leverages AI to enhance antibody-based therapeutics discovery and development. Their LensAI platform, which predicts safety profiles, immunogenicity, and efficacy of antibodies, has seen rapid revenue growth due to increased customer adoption.
Furthermore, the expansion of ImmunoPrecise’s AI business has contributed to an improvement in gross margins, with expectations of further growth as the FDA promotes AI tools in preclinical development. The company’s integration of AI technology, combined with its established wet-lab capabilities and growing customer base, positions it as a strong competitor in the CRO market. The valuation supporting the Buy rating is based on a risk-adjusted net present value analysis of projected future revenues, leading to a 12-month price target of $5.
In another report released on April 1, Benchmark Co. also maintained a Buy rating on the stock with a $3.00 price target.