Analyst Ratings February 24, 2026

Wedbush Starts Abivax Coverage with Underperform Rating, Flags M&A and Data Risks

Analyst cautions on valuation, recommends waiting for 2Q26 readout or taking profits amid takeover speculation and mixed analyst views

By Hana Yamamoto ABVX
Wedbush Starts Abivax Coverage with Underperform Rating, Flags M&A and Data Risks
ABVX

Wedbush has initiated coverage of Abivax (ABVX) with an Underperform rating and a $110 price target, signaling roughly 17% downside from recent levels. The firm highlights valuation concerns and substantial downside risk if anticipated deals do not materialize after a 2Q26 data readout. Other brokers maintain bullish stances following positive trial data and ongoing speculation about possible acquisitions.

Key Points

  • Wedbush initiates coverage with an Underperform rating and a $110 price target, implying roughly 17% downside from $132.91.
  • Abivax’s lead candidate, obefazimod, is a first-in-class miR-124 enhancer with proposed inhibition of STAT3, MCP1, and pro-inflammatory cytokines; a registrational Phase 3 program is underway in ulcerative colitis.
  • Other brokers remain bullish after positive data and takeover speculation - Citizens ($131 target), BTIG ($150 target), and Guggenheim ($175 target) - keeping healthcare and biotech market attention elevated.

Wedbush began coverage of Abivax SA (NASDAQ:ABVX) this week, assigning an Underperform rating and setting a price objective of $110.00. With the stock trading around $132.91 at the time of the note, Wedbush’s target implies about 17% downside from those levels. InvestingPro data referenced in the coverage suggests the shares trade above the platform’s Fair Value estimate.

Abivax is a clinical-stage biopharmaceutical company focused on therapies for inflammatory and immune-mediated conditions. Its lead candidate, obefazimod, is described as a first-in-class enhancer of the microRNA sequence miR-124. The drug’s proposed mechanisms of action include inhibition of STAT3, MCP1, and multiple pro-inflammatory cytokines. Abivax is currently running a registrational Phase 3 program in ulcerative colitis.

Wedbush noted the stock’s recent rally has been driven by two factors: early induction data from clinical studies and market speculation about potential mergers and acquisitions. Against that backdrop, the firm advised investors either to wait for the 2Q26 readout or to realize gains at current prices. The strategist specifically called out substantial downside risk if a contemplated deal does not come together following the 2Q26 data release.

Several other brokerages and market participants have continued to weigh in on Abivax in recent weeks, reflecting a divergence of views. Citizens reiterated a Market Outperform rating and a $131 price target after new data presented at the European Crohn’s and Colitis Organization annual meeting. BTIG raised its target on Abivax to $150 from $120 while maintaining a Buy rating, citing positive results from the Phase 3 ABTECT trial for obefazimod and the drug’s potential to be a preferred option for moderate to severe patients.

Speculation about a possible takeover has dogged the stock, with reports of interest from large pharmaceutical companies such as AstraZeneca and Eli Lilly. Abivax has publicly denied those takeover reports. Despite that denial, Guggenheim has reiterated a Buy rating and assigned a $175 price target, noting that comprehensive safety data expected in March could be a factor in strategic choices.

Management at Abivax has reaffirmed the timelines for its clinical programs. The company expects top-line results from a 44-week maintenance study to be reported in late 2026. Those timelines, coupled with the upcoming data readouts and ongoing market attention, continue to attract both investor and analyst scrutiny.

In sum, Wedbush’s initiation introduces a cautious perspective centered on valuation and event risk, while other firms point to encouraging trial data and potential strategic options that support higher price targets. Investors face a combination of clinical readout timing, valuation comparisons to fair value estimates, and takeover speculation when assessing exposure to ABVX.


Clear summary

Wedbush starts coverage of Abivax with an Underperform rating and a $110 target, urging investors to await 2Q26 data or lock in gains; other brokers maintain Buy or Outperform stances citing positive clinical data and potential strategic interest.

Risks

  • Significant downside if a prospective M&A transaction does not occur following the 2Q26 readout - impacts biotech M&A activity and investor positions in small-cap biopharma.
  • Valuation concerns highlighted by InvestingPro, which indicates the stock is trading above its Fair Value estimate - affects equity valuation comparisons in the biotech sector.
  • Clinical and regulatory timing risk tied to upcoming data releases, including the 2Q26 readout and full safety data expected in March, as well as top-line results from a 44-week maintenance trial due in late 2026 - influences clinical-stage biotech investment risk.

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