JonesTrading analyst Debanjana Chatterjee maintained a Buy rating on AbSci today and set a price target of $8.00.
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Debanjana Chatterjee’s rating is based on the promising potential of AbSci’s ABS-201 therapy for androgenetic alopecia (AGA). The current standard treatments, such as minoxidil and finasteride, have limitations including lifelong commitment, poor compliance, and minimal hair regrowth satisfaction among patients. These treatments also come with undesirable side effects, such as irritation and potential sexual dysfunction, which highlight the need for a more effective solution.
Chatterjee sees a significant opportunity for AbSci’s injectable therapy, which aims to offer rapid and visible results without the initial shedding phase that current treatments cause. The potential for a 50% or more improvement in hair density in a substantial portion of treated individuals, combined with limited treatment sessions and durable efficacy, positions ABS-201 as a premium option in the market. The FDA’s focus on safety for cosmetic treatments further underscores the importance of ABS-201’s development, supporting the Buy rating.
In another report released on August 18, Morgan Stanley also maintained a Buy rating on the stock with a $5.89 price target.
Based on the recent corporate insider activity of 19 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ABSI in relation to earlier this year.