Abivax SA Sponsored ADR (ABVX) has received a new Buy rating, initiated by Wolfe Research analyst, Andy Chen.
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Andy Chen has given his Buy rating due to a combination of factors related to the potential success of Abivax SA’s obefazimod (miR-124) in treating Crohn’s disease (CD). Chen’s analysis suggests that the drug’s mechanism is more effective for CD than ulcerative colitis (UC), where it has already shown success. This positions CD as a significant opportunity for stock growth, with a favorable risk-reward profile.
Chen points out that the efficacy of Tremfya in CD, alongside the unique mechanism of obefazimod, supports the potential for positive outcomes. The drug’s ability to target STAT3 and influence IL-23 signaling, crucial in CD, is highlighted as a key advantage. Additionally, the ‘monocyte parkage’ mechanism, which is not captured by Tremfya, further underscores the potential of obefazimod in CD treatment. These insights lead to a positive outlook for Abivax SA’s stock, anticipating promising results by 2026.
In another report released on November 3, BTIG also maintained a Buy rating on the stock with a $120.00 price target.