Street Calls of the Week
Investing.com - Truist Securities initiated coverage on Abivax (NASDAQ:ABVX) with a Buy rating and a price target of $140.00 on Monday. The target represents about 18% upside from the current price of $119.12, with Abivax shares already trading near their 52-week high of $126.99.
The research firm highlighted Abivax as a "high-promise I&I story" featuring obefazimod, which it described as a first-in-class oral therapy for inflammatory bowel disease (IBD).
Truist Securities pointed to a catalyst-rich setup for the company, noting the upcoming phase III Ulcerative Colitis maintenance readout expected in the second quarter of 2026, supported by competitive efficacy across pre-treated patients, favorable safety profile, and novel miR-124 mechanism of action.
The firm also mentioned the phase IIb Crohn’s disease topline results anticipated in the second half of 2026, positioning Abivax as a "compelling play in a commercially de-risked market" and a potential acquisition target with strategic appeal.
Truist Securities noted additional upside potential from broader inflammation and immunology indication opportunities beyond Ulcerative Colitis and Crohn’s Disease, with strong management and sustained business development interest supporting long-term value creation. The optimism comes despite Abivax not being profitable, with an EBITDA of -$218.67 million. InvestingPro data shows the stock has delivered remarkable returns of over 1250% in the past year, with analysts maintaining a bullish consensus ahead of earnings due December 15. InvestingPro subscribers can access 14 additional insights about Abivax’s financial health and growth prospects.
In other recent news, Abivax announced significant improvements in quality of life measures from its Phase 3 ABTECT induction trials for patients with moderate-to-severe ulcerative colitis. The trials showed that 37% of patients receiving a 50mg daily dose of obefazimod reported no bowel urgency at week 8, compared to 18.1% in the placebo group. Additionally, 47.6% of patients on the same dose reported no nocturnal bowel movements versus 24.7% in the placebo group. Barclays initiated coverage on Abivax with an Overweight rating and a price target of $142.00, citing the company’s development of a novel oral molecule for ulcerative colitis and Crohn’s disease. Guggenheim raised its price target for Abivax to $150.00 from $101.00, maintaining a Buy rating after receiving positive feedback on obefazimod at a recent conference. Leerink Partners also increased its price target to $115.00 from $104.00, maintaining an Outperform rating, following supportive efficacy analysis presented at the United European Gastroenterology Week. Citizens reiterated its Market Outperform rating with a $114.00 price target, highlighting improvements in quality of life among patients treated with obefazimod. These developments reflect growing confidence in Abivax’s drug candidate for treating inflammatory bowel diseases.
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