In a report released on May 9, Puneet Souda from Leerink Partners maintained a Buy rating on AbCellera Biologics (ABCL – Research Report), with a price target of $5.00.
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Puneet Souda has given his Buy rating due to a combination of factors that highlight AbCellera Biologics’ promising position in the antibody discovery space. The company is leveraging its substantial liquidity of over $800 million to develop an internal pipeline and establish strategic partnerships. AbCellera is on track with its clinical timeline, planning CTA submissions for ABCL635 and ABCL575 in the second quarter of 2025, with phase I trials set to begin later that year. The company has disclosed that ABCL635 targets NK3R for treating vasomotor symptoms, a market estimated to be worth $2 billion.
AbCellera’s focus on GPCR and ion channel assets, which have historically been challenging to target with antibodies, positions it well for future success. These assets make up a significant portion of their discovery programs, and the company is well-capitalized to pursue these opportunities despite the broader biotech sector’s challenges. With clinical development supported by government grants in Canada, AbCellera is somewhat insulated from FDA restructuring impacts. Given the company’s strong liquidity and the potential of its pipeline, Souda sees significant upside potential, maintaining an Outperform rating and a price target of $5.
Based on the recent corporate insider activity of 9 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 ABCL in relation to earlier this year.