XOMA’s Strategic Expansion and Robust Growth Potential Drive Buy Rating

Robert Wasserman, an analyst from Benchmark Co., has initiated a new Buy rating on Xoma (XOMA).

Robert Wasserman has given his Buy rating due to a combination of factors including XOMA’s strategic expansion and robust growth potential. The company has significantly broadened its royalty business through acquisitions and internal development, which is expected to drive substantial revenue growth over the coming years. XOMA’s commercial asset portfolio, which now includes six products, is anticipated to enhance revenues by over 20% annually through 2026, supported by the commercial success of products like Vabysmo and new launches such as Ojemda.
Additionally, XOMA’s extensive R&D pipeline, with several products in Phase 3 trials, promises further clinical progress and potential revenue contributions. The company’s aggressive M&A activity, including acquisitions and royalty monetization agreements, has strengthened its asset portfolio, positioning it for continued growth. Despite a recovery from post-pandemic lows, XOMA’s valuation remains attractive compared to its peers, suggesting room for further appreciation. Wasserman’s price target of $35 reflects confidence in XOMA’s strong fundamentals and expanding investor visibility.

Based on the recent corporate insider activity of 14 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 XOMA in relation to earlier this year.