ABSI Should I Buy
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Absci Corp (ABSI) is not a strong buy for a beginner, long-term investor at this time. The stock exhibits weak financial performance, negative trading trends, and a lack of positive momentum in technical and options data. While there are some positive developments in leadership and R&D, the overall risk profile and lack of near-term growth visibility make it unsuitable for immediate investment.
The MACD is above 0 but contracting, indicating weakening momentum. RSI is neutral at 40.022, suggesting no clear overbought or oversold conditions. Moving averages are converging, and the stock is trading near its support level of 2.557, with resistance at 2.821. Overall, the technical indicators do not suggest a strong buy signal.
The appointment of Ransi Somaratne as Chief Medical Officer brings experienced leadership to the company's AI-designed therapeutics pipeline. Andreas Busch's continued involvement as co-chair of the Scientific Advisory Board post-retirement ensures strategic guidance for R&D.
Morgan Stanley downgraded the stock, citing increased risk and reduced visibility of near-term execution. Hedge funds are aggressively selling the stock, with a 1029.38% increase in selling activity last quarter. Financial performance shows a significant revenue decline (-77.78% YoY) and negative EPS growth (-16.67% YoY).
In Q3 2025, revenue dropped significantly by 77.78% YoY to $378,000. Net income improved slightly but remains negative at -$28.71M. EPS declined by 16.67% YoY to -0.2, and gross margin remained flat at 100%. The financials indicate weak growth and profitability trends.
Morgan Stanley downgraded the stock to Equal Weight from Overweight, lowering the price target to $4.32 from $5.80 due to increased risk and reduced visibility of near-term execution. H.C. Wainwright remains optimistic, raising the price target to $8 from $7 based on the potential of the ABS-201 program. However, the mixed ratings and reduced price target from Morgan Stanley reflect a cautious outlook.
