OmniAb (OABI – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst on March 18. Analyst Puneet Souda from Leerink Partners maintained a Buy rating on the stock and has a $12.00 price target.
Puneet Souda has given his Buy rating due to a combination of factors that highlight OmniAb’s strong position in the antibody therapeutics market. The company has demonstrated significant growth in its partner programs, adding 12 net programs in the fourth quarter of 2024, which reflects a 12% increase in active programs. This growth is noteworthy given the broader industry trend of pipeline prioritization among large pharmaceutical companies.
Additionally, OmniAb’s strategic decisions, such as exiting small molecule ion channel efforts, are expected to help manage operational expenses effectively in 2025. The company’s cash balance of $59 million at the end of the fourth quarter of 2024, along with its guidance for reduced cash usage in 2025, suggests a pathway to cash flow profitability. Despite uncertainties in the academic sector, OmniAb continues to secure new license agreements, reinforcing its robust discovery platform. These factors collectively underpin Souda’s confidence in OmniAb’s potential for continued success.
According to TipRanks, Souda is an analyst with an average return of -12.7% and a 27.88% success rate. Souda covers the Healthcare sector, focusing on stocks such as Illumina, Natera, and Castle Biosciences.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $4.00 price target.