Puneet Souda, an analyst from Leerink Partners, maintained the Buy rating on AbCellera Biologics (ABCL – Research Report). The associated price target is $7.00.
Puneet Souda has given his Buy rating due to a combination of factors that highlight AbCellera Biologics as a promising investment. The company is leveraging its substantial liquidity of over $800 million to develop an internal pipeline and establish high-value strategic partnerships. The year 2025 is expected to be significant for AbCellera, with key developments such as the CTA filings for ABCL635 and ABCL575 and the opening of a GMP facility. Additionally, the company plans to disclose the indication for ABCL635, which targets a metabolic condition with a $2 billion total addressable market, and to present preclinical data for ABCL575.
Moreover, AbCellera is focusing on difficult targets like GPCR and ion channels, which could differentiate its pipeline and attract strategic partners, especially in light of increasing competition. Although partner programs are no longer the main focus, three partner programs entered Phase I in the fourth quarter, potentially driving future milestone and royalty revenue. The stock is trading near its total liquidity, suggesting potential upside from its royalty portfolio and internal pipeline. These factors contribute to the optimistic outlook and the Buy rating for AbCellera Biologics.
In another report released on February 28, Stifel Nicolaus also maintained a Buy rating on the stock with a $10.00 price target.
ABCL’s price has also changed moderately for the past six months – from $2.610 to $2.920, which is a 11.88% increase.