On Wednesday, Morgan Stanley initiated coverage on Absci Corp. (NASDAQ: ABSI) stock, a company specializing in the use of artificial intelligence (AI) and machine learning (ML) for biologic drug discovery. The firm assigned an Overweight rating to the stock, accompanied by a price target of $7.00.
Absci Corp. is recognized for its Integrated Drug Creation platform, which employs generative AI coupled with wet lab validation in a continuous process. This innovative approach is designed to expedite the development of unique antibody therapies. The company's business strategy involves forming partnerships within the biopharmaceutical industry, as well as nurturing an early-stage proprietary pipeline.
The company has established several significant partnerships, with three collaborations that have publicly disclosed financial terms. These agreements are with prominent industry players such as Merck, AstraZeneca (NASDAQ:AZN), and Almirall. Morgan Stanley views these partnerships as a testament to the credibility and potential of Absci's technology platform.
Absci's focus on AI/ML-enabled biotechnology for drug discovery positions it at the forefront of a rapidly evolving sector. Its platform's ability to streamline the creation of differentiated biologic treatments could offer substantial advantages in the competitive biopharma landscape.
The Overweight rating suggests that Morgan Stanley sees Absci's stock as a potentially valuable investment, with expectations that the company's share price could outperform the average market return. The $7.00 price target indicates the firm's confidence in Absci's growth prospects and the strength of its business model.
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