This biotech stock is up more than 1,000% since late July. Jefferies thinks there are more gains ahead

The market could be undervaluing shares of Abivax , according to Jefferies. The bank initiated the clinical-stage biotechnology firm at a buy rating and $160 price target, implying an upside of 39% from Friday close. Analyst Faisal Khurshid applauded Abivax’s obefazimod, an oral drug developed to treat moderately to severely active ulcerative colitis, as a catalyst for strong gains ahead. “We view obefazimod (obe) as a ‘unicorn’ in the large market of inflammatory bowel disease (IBD) given strong efficacy in the format of a safe, easy oral pill,” he wrote. By 2030, he estimated that the inflammatory bowel disease market could reach over $30 billion worldwide. He believes that shares of Abivax currently look “underappreciated” given the robust ulcerative colitis story and potential upside for patients with Crohn’s disease. This is despite the stock surging from $10 in late July after the company reported positive trial results for obefazimod. Since then, shares are up 1,055%. ABVX mountain 2025-07-22 ABVX since late July The company has also been linked to multiple reports of acquisition offers, though Khurshid said potential market expansion matters more to fundamental and strategy value. “Obe already looks like a real and differentiated UC drug, and we think the 2Q26 maintenance readout is fairly de-risked and should provide clear path to approval. We also think Crohn’s matters for the long-term valuation (and hence any potl strategic interest). We are more bullish vs buyside expectations and see a strong shot based on MOA, translational data, and precedent,” he said. “It is a fact that [Crohn’s disease] is roughly as big as [ulcerative colitis], so assessing that is in our view the most important variable to fundamental + strategic value.”