Optimistic Buy Rating for Abivax SA: Obefazimod’s Potential in Ulcerative Colitis and Market Opportunity

Analyst Julian Harrison of BTIG maintained a Buy rating on Abivax SA Sponsored ADR (ABVX – Research Report), retaining the price target of $43.00.

Julian Harrison has given his Buy rating due to a combination of factors that highlight the potential of Abivax SA’s obefazimod in treating ulcerative colitis (UC). The discussions during an investor meeting emphasized the need for an effective and easy-to-administer oral treatment for UC, where obefazimod’s strong efficacy profile stands out, especially in patients with advanced treatment experience. The upcoming Phase 3 ABTECT trial’s 8-week induction data, expected in the third quarter of 2025, is anticipated to be a critical milestone for the company, with the potential to significantly boost the stock’s value if the results are favorable.
Additionally, the current stock weakness presents a unique opportunity for substantial near-term gains, as the market seems to undervalue obefazimod’s potential. The drug is well-positioned to become a preferred pre-JAK treatment option, particularly given the reported adverse effects of JAK inhibitors. The baseline characteristics of the ABTECT trial align with those of the successful Phase 2b trial, further enhancing the likelihood of replicating positive results. These factors collectively contribute to the optimistic outlook and justify the Buy rating.

Harrison covers the Healthcare sector, focusing on stocks such as Protagonist Therapeutics, Nektar Therapeutics, and Spyre Therapeutics. According to TipRanks, Harrison has an average return of -0.8% and a 38.61% success rate on recommended stocks.

In another report released on April 30, Citizens JMP also reiterated a Buy rating on the stock with a $33.00 price target.