Abivax's stock is experiencing a significant boost after Jefferies analyst Faisal Khurshid upgraded the company from hold to buy, raising the price target from $108 to $158, which suggests an 18% upside from the recent closing price.
This upgrade follows new data indicating that malignancies in patients treated with Abivax's obefazimod were consistent with normal levels for ulcerative colitis patients. Additionally, over a third of patients who initially did not respond to the treatment achieved remission after approximately 10 months.
Khurshid noted that the new data alleviates previous investor concerns and enhances the drug's efficacy profile. Despite acknowledging ongoing risks related to cash runway and commercial needs for a potential standalone launch, he expressed renewed optimism about the stock's value.
Following the upgrade, Abivax shares rose by more than 1%, and overall sentiment among analysts remains positive, with 10 out of 12 rating the stock as a buy or strong buy