TD Cowen analyst Brendan Smith maintained a Buy rating on OmniAb yesterday and set a price target of $3.00.
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Brendan Smith has given his Buy rating due to a combination of factors including the introduction of OmniAb’s new OmniUltra technology. This innovative platform offers significant flexibility in antibody discovery and design, potentially setting OmniAb apart from competitors by enabling the production of ultralong CDRH3 antibodies. The technology is expected to enhance OmniAb’s capabilities and broaden its applicability in various fields such as bispecifics and CAR-T therapies.
Despite a reduction in revenue guidance for FY25 due to delays in partner programs, Smith notes that the company’s operational expense reductions and the positive outlook for the xPloration launch could drive growth in 2026 and beyond. The management’s efforts to streamline operations and control expenses, alongside the potential for increased interest in OmniAb’s technology as new pharma budgets are set, contribute to the optimistic Buy rating.