OmniAb, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Brendan Smith from TD Cowen maintained a Buy rating on the stock and has a $3.00 price target.
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Brendan Smith has given his Buy rating due to a combination of factors, including a clearer path to revenue acceleration in 2026 and strengthening contribution from newer technology offerings. While 2025 revenue is expected to decline as milestone and licensing payments normalize, management’s guidance for a sizeable rebound in 2026 reflects growing visibility into partner pipelines and the potential for meaningful royalty and milestone expansion over the near to medium term.
At the same time, the company is actively tightening its cost structure and managing cash carefully, which supports a more sustainable operating profile ahead of anticipated revenue inflection. Recent reductions in operating expenses, disciplined headcount actions, and a solid cash position provide a buffer during the transition period, while emerging platforms such as xPloration are positioned to drive incremental growth and enhance partner engagement, reinforcing the upside case for the shares.
According to TipRanks, Smith is a 3-star analyst with an average return of 1.8% and a 38.89% success rate. Smith covers the Healthcare sector, focusing on stocks such as Halozyme, West Pharmaceutical Services, and Azenta.