Wednesday, Absci Corp. (NASDAQ:ABSI) shares, currently trading at $3.22, received a positive outlook from Needham as the firm began coverage with a Buy rating and set a price target of $9.00. The stock has shown strong momentum with a 12.6% gain over the past week, according to InvestingPro data.
Needham highlighted Absci's distinct approach in the competitive artificial intelligence and machine learning (AI/ML) field, which is crowded with companies offering similar services.
The research firm emphasized three main reasons for their optimistic stance on Absci. First, Absci's development and ownership of valuable wet-lab data were seen as crucial for the company's progress in drug development. Secondly, the potential for Absci to possess best-in-class assets in high-value therapeutic areas was noted.
Lastly, Needham appreciated Absci's business strategy, which is geared towards early-stage value creation and monetization. InvestingPro analysis shows the company maintains a strong liquidity position with a current ratio of 5.63 and holds more cash than debt on its balance sheet, though it is currently burning through cash rapidly.
Needham's coverage note stated that the ability to produce high-quality wet-lab data is essential for advancement within the industry. Absci's strategy has set it apart from its peers, with the company having several early-stage and clinical programs underway as it entered 2025.
The firm also mentioned Absci's lead program, ABS-101, which targets TL1A in inflammatory bowel disease (IBD). Initial results for this program are expected in the second half of 2025, which could potentially be a significant milestone for the company.
Investors will be watching closely as Absci continues to develop its pipeline and awaits the forthcoming results of its lead program. The endorsement from Needham with a Buy rating and a $9 price target reflects confidence in Absci's unique approach within the AI/ML space for drug development.
Analyst targets currently range from $5 to $13, with InvestingPro indicating the stock is trading above its Fair Value. InvestingPro subscribers have access to 8 additional key insights about Absci's financial health and market position.
In other recent news, Absci Corp has been making significant strides in its AI-drug discovery sector. The company's earnings and revenue potential were highlighted by H.C. Wainwright, which reiterated a Buy rating on Absci's stock. The firm emphasized Absci's successful partnerships in the pharmaceutical landscape, which are projected to potentially generate over $1.5 billion in revenue.
Absci's recent strategic collaborations with Advanced Micro Devices (NASDAQ:AMD) and AstraZeneca (NASDAQ:AZN) were also spotlighted. The partnership with AMD, which includes a $20 million investment, aims to enhance Absci's AI-driven drug discovery capabilities. Moreover, the collaboration with AstraZeneca focuses on accelerating the discovery of new cancer treatments.
Analysts from multiple firms, including Jones Trading and H.C. Wainwright, have expressed confidence in Absci's unique AI-based platform and its ability to secure multiple pharmaceutical deals. Jones Trading initiated Absci with a Buy rating, emphasizing the company's unique AI-driven platform and success in securing multiple pharmaceutical deals.
These developments demonstrate Absci's commitment to leveraging AI for significant advancements in biologics and underscore its strategic positioning in the rapidly evolving sector.
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