AbSci (ABSI) AI Stock Analysis

• Market Cap: $386.50M
• Dividend Yield: N/A
• Average Volume (3M): 2.60M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.65
• Revenue Growth: -9.95%
• EPS Growth: 20.78%
• Country: US
• Employees: 156
• Sector: Healthcare
• Sector Strength: 41
• Industry: Biotechnology
• EPS (TTM): -0.21
• Shares Outstanding: 127,559,350
• 10 Day Avg. Volume: 2,096,255
• 30 Day Avg. Volume: 2,604,249
• PEG Ratio: -3.26
• Price to Book (P/B): 1.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.03
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 20.69
• Enterprise Value/Gross Profit: -67.42
• Enterprise Value/Ebitda: -1.01
• 1Y Price Target: $9.14
• Price Target Upside: 207.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 51 Neutral
• Price Target: $3.00 ▲(1.01%Upside)

AbSci's overall stock score reflects significant financial challenges and speculative valuation, tempered by promising strategic developments and a solid cash position. Initiatives in AI-driven drug discovery and potential partnerships provide a positive outlook despite ongoing operational inefficiencies.

Positive Factors

Clinical Progress

Absci has dosed the first participant in ABS-101's Ph1 trial, marking its transition into a clinical stage biotech.

Competitive Advantage

Absci's AI-driven platform can design antibodies to precisely target an epitope with optimized interface contacts to ensure high potency and affinity, setting itself apart from competitors.

Partnership Potential

Management cited strong potential partnership interest for ABS-101, allowing for a collaboration independent of the TL1A bispecific that Absci is progressing through its early pipeline.

Negative Factors

Financial Performance

Absci reported 1Q25 revenues of $1.2M, which fell short of the consensus estimate of $2.6M.

Partnership Risks

Risks to the Buy rating include potential issues with partnerships, technology, clinical and regulatory challenges, and competition.

Revenue Shortfall

Absci's cash & equivalents balance as of the end of 1Q25 was ~$135M, which management estimates provides a runway into 1H27.

AbSci Business Overview & Revenue Model

Company Description

AbSci Corporation (ABSI) operates in the biotechnology sector, focusing on transforming the process of drug discovery and development. The company utilizes its proprietary synthetic biology platform to enable the creation and production of complex biological molecules, including antibodies and other therapeutic proteins. AbSci's platform aims to accelerate the development of new drugs and optimize protein production processes for biopharmaceutical companies.

How the Company Makes Money

AbSci makes money primarily through partnerships and collaborations with pharmaceutical and biotechnology companies. The company's revenue model includes upfront payments, milestone payments, and royalties based on the commercialization of products developed using its technology. AbSci's platform provides its partners with the capability to efficiently produce complex proteins, which are critical in developing new therapeutics. Additionally, the company may earn revenue by offering its services as a contract development and manufacturing organization (CDMO), providing end-to-end solutions for protein production. Significant partnerships with major biopharmaceutical companies contribute to its earnings by leveraging its technology to enhance drug discovery and development processes.

AbSci Financial Statement Overview

Summary

AbSci's financial performance is challenged by negative margins and cash flow issues. Despite a strong equity position and low leverage, profitability and cash flow generation are major concerns, evidenced by negative EBIT, EBITDA, and operating cash flow.

Income Statement

The income statement reveals persistent revenue stagnation and consistent net losses. The Gross Profit Margin and Net Profit Margin are negative, highlighting ongoing operational challenges. Revenue growth remains unstable with a decline in recent periods, while negative EBIT and EBITDA margins indicate significant operational inefficiencies.

Balance Sheet

The balance sheet shows a strong equity position with a low debt-to-equity ratio, indicating financial leverage is not a major concern. However, the continued net losses impede returns, as evidenced by the negative ROE. The equity ratio is relatively stable but has been decreasing, reflecting potential asset allocation challenges.

Cash Flow

Operating Cash Flow remains negative, reflecting ongoing cash burn, while Free Cash Flow also faces significant challenges. The company’s cash flow from operations compared to net income shows issues in converting income into cash, despite positive financing activities in recent periods providing liquidity support.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.82M	4.53M	5.72M	5.75M	4.78M	4.78M
	Gross Profit
-5.16M	-8.86M	-41.85M	-7.29M	-1.87M	-6.67M
	EBIT
-113.12M	-108.89M	-115.52M	-106.75M	-75.24M	-13.30M
	EBITDA
-93.91M	-89.08M	-95.46M	-91.36M	-99.77M	-12.59M
	Net Income Common Stockholders
-107.48M	-103.11M	-110.57M	-104.90M	-100.96M	-14.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
133.98M	112.42M	97.66M	164.43M	252.57M	69.87M
	Total Assets
232.45M	213.61M	217.30M	321.01M	426.19M	88.57M
	Total Debt
8.23M	10.11M	15.96M	22.98M	20.01M	14.50M
	Net Debt
-38.76M	-31.11M	-56.41M	-36.97M	-232.56M	-55.37M
	Total Liabilities
33.65M	34.48M	41.12M	46.59M	60.09M	178.00M
	Stockholders Equity
198.80M	179.13M	176.18M	274.41M	366.11M	-89.43M
Cash Flow		Free Cash Flow
-76.81M	-72.81M	-65.50M	-97.51M	-98.64M	-13.15M
	Operating Cash Flow
-76.38M	-72.40M	-64.64M	-81.34M	-60.60M	-10.97M
	Investing Cash Flow
20.06M	-41.58M	81.94M	-126.98M	-67.38M	-2.17M
	Financing Cash Flow
44.14M	82.53M	-4.48M	5.24M	336.19M	70.97M

AbSci Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.97
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABSI, the sentiment is Positive. The current price of 2.97 is above the 20-day moving average (MA) of 2.82, above the 50-day MA of 2.82, and below the 200-day MA of 3.47, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 59.17 is Neutral, neither overbought nor oversold. The STOCH value of 76.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ABSI.

AbSci Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STOK	78 Outperform	$608.21M	14.15	20.50%	―	2333.50%	―
UPB	64 Neutral	$623.47M	―		―	―	―
ZVRA	54 Neutral	$506.33M	―	-204.78%	―	44.92%	-40.06%
Sector *	54 Neutral	$5.31B	3.26	-45.10%	2.79%	16.76%	0.02%
ABSI	51 Neutral	$386.50M	―	-48.98%	―	-9.95%	20.78%
OMER	40 Underperform	$220.89M	―	87.26%	―	―	-43.76%
SANA	33 Underperform	$640.58M	―	-71.44%	―	―	19.94%

AbSci Corporate Events

Absci Initiates First Human Study for ABS-101

On May 13, 2025, Absci Corporation announced the initiation of its first-in-human study for ABS-101, marking its transition to a clinical-stage biotech company. The company also shared promising preclinical data for ABS-201, indicating potential for a more effective treatment for androgenetic alopecia. Financially, Absci reported a net loss of $26.3 million for Q1 2025, with cash reserves expected to fund operations into the first half of 2027. The company’s strategic focus remains on advancing its internal pipeline and expanding partnerships, with anticipated new collaborations in 2025.

The most recent analyst rating on (ABSI) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on AbSci stock, see the ABSI Stock Forecast page.