In a report released on May 8, Puneet Souda from Leerink Partners maintained a Buy rating on OmniAb (OABI – Research Report), with a price target of $7.00.
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Puneet Souda has given his Buy rating due to a combination of factors that highlight OmniAb’s strong market position and growth potential. The company has demonstrated significant program growth, with a notable increase in active programs compared to the previous year. This growth is indicative of OmniAb’s robust and scalable business model, which continues to thrive despite challenging macroeconomic conditions.
Additionally, the launch of the xPloration partner access program introduces a new revenue stream, enhancing the company’s value proposition to its partners. This initiative is expected to contribute positively to the company’s financial guidance. While there are concerns regarding the cash balance, OmniAb’s efficient operating model and expanding portfolio provide management with strategic options to achieve sustained revenue growth through milestones and royalties. Overall, these factors contribute to a positive outlook for OmniAb, justifying the Buy rating.
Souda covers the Healthcare sector, focusing on stocks such as Bruker, Illumina, and Repligen. According to TipRanks, Souda has an average return of -13.7% and a 27.94% success rate on recommended stocks.
In another report released today, Benchmark Co. also maintained a Buy rating on the stock with a $6.00 price target.