We recently published a list of 10 Trending AI Stocks in October. Since Absci Corp (NASDAQ:ABSI) ranks 10th on the list, it deserves a deeper look.
Tom Lee, Fundstrat co-founder, while talking to CNBC in a latest program, explained his bullish case for the market and why he believes the S&P 500 is headed to close the year “well beyond” 5,700.
“Bull markets are supported by a strong fundamentals and this is a case where not only has the economy survivie extremely high interest rates but the Fed is beginning to cut rates, and an economy that has been sort of languishing has been China. Now we have stimulus and what looks like some bazooka policies that are supporting that region, and we have a lot of cash on the sidelines. I think this is a formula for stocks to do pretty well the next three to 12 months, and that’s why we think that we would be well beyond 5700 before year-end.”
Lee said that he’s inclined to buy “risks outright” as he believes more upward momentum would come for stocks after the election.
“Small caps still have good fundamentals, earnings growth is accelerating, the media P/E is eleven times which is almost seven turns lower than the S&P so I think there is still case to be made that small-cap are starting a multi-year gain.”
For this article we picked 10 AI stocks that are making big moves on the back of latest news. With each company we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Absci Corp (NASDAQ:ABSI)
Number of Hedge Fund Investors: 17
Absci Corporation is a U.S.-based company that uses generative AI and scalable wet lab technologies to accelerate biologic drug creation by optimizing multiple drug characteristics simultaneously for improved discovery and therapeutic outcomes.
The stock recently received a Buy rating from Guggenheim, which set a price target of $10.00. The firm cited Absci Corp (NASDAQ:ABSI) unique position in leveraging AI to lead the development of first- and best-in-class biologics.
The company’s platform can quickly assess millions of antibody variants, provides a competitive edge in generating large-scale proprietary data—an increasingly valuable asset in the biotech industry.
Guggenheim’s report highlights the potential of Absci’s AI-driven technology to significantly impact the biologics sector. Advances in AI, particularly through Large Language Models, are reshaping various industries, and Absci’s drug discovery approach positions it at the forefront of these changes.
The company balances risk in its pipeline with a mix of fast-follower programs and new biological explorations. This strategic approach, combined with the leadership team’s expertise, sets Absci Corp (NASDAQ:ABSI) up to benefit from the evolving techbio landscape.
The analyst’s $10.00 price target reflects confidence in Absci’s growth trajectory and its ability to use AI to drive advancements in biologics. The stock rating is based on the company’s current technological strengths and its strategic market positioning.
Absci Corp (NASDAQ:ABSI) utilizes its IDCP technology to rapidly produce high-quality drug candidates in as little as six weeks, reducing costs and boosting research success rates. The company has promising drug candidates in areas like inflammatory bowel disease, dermatology, and immuno-oncology, securing major partnerships valued at over $900 million, including royalties.
Absci is set to initiate a Phase 1 study of ABS-101 for inflammatory bowel disease (IBD) in early 2025, with interim data expected in the second half of the year. ABS-101 aims to stand out through features like de novo antibody creation, multiparameter lead optimization, and reverse immunology, offering potential advantages in potency and dosing flexibility.
The global markets for Crohn’s Disease and ulcerative colitis treatments are projected to reach $17.8 billion and $14.77 billion, respectively, by 2033.
Overall, Absci Corp (NASDAQ:ABSI) ranks 10th on Insider Monkey’s list titled 10 Trending AI Stocks in October. While we acknowledge the potential of Absci Corp (NASDAQ:ABSI), our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ABSI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.