On Tuesday, Truist Securities reinstated coverage on Absci Corp. (NASDAQ:ABSI), a biotechnology company specializing in AI-driven drug design, with a Buy rating. The firm has set a share price target of $9.00 for the company's stock.
Truist Securities highlights Absci's position as a leading AI technology-enabled biotech firm, noting its advancements in in-silico based drug design and development. The analyst points out that the company's recent fundraising efforts have successfully removed a significant short-term financial concern, providing the company with an extended cash runway until 2027, according to management.
The firm also anticipates that the biggest potential catalyst for Absci within this year is the forthcoming data on the TL1A asset NHP PK. This data, which is expected to be released later in the year, is seen as a key driver for the company's stock performance.
In addition to these developments, Truist Securities has updated its model for Absci based on the company's recent preliminary earnings release. The new price target of $9.00 per share is derived from a Discounted Cash Flow (DCF) valuation method.
The reinstatement of coverage and the establishment of the new price target reflect a positive outlook on Absci's financial stability and its potential for growth in the field of AI-driven biotechnology. The company's stock rating and price target are based on the current and anticipated developments within the company.
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