Is ABVX a good stock to buy?

**ABVX (Abivax) is not a good stock to buy at this moment.** Here's why: 1. **Recent Surge Due to Clinical Trial Results**: ABVX's stock surged by 586% on July 23, 2025, following the announcement of positive Phase 3 clinical trial results for its ulcerative colitis treatment, obefazimod. This surge was driven by speculative trading patterns, but it was grounded in concrete clinical outcomes. 2. **Financial Health Concerns**: Despite the positive clinical results, the company's financial health is mixed. ABVX reported a net income loss of approximately $135 million for Q1 2025 and a net income loss of $56.54 million for the most recent quarter. The company also has a negative free cash flow of $4.92 million. |code|Ticker|Name|Date|Net Fund Flow|Net Fund Flow (Block Order)|market_code| |---|---|---|---|---|---|---| |ABVX|ABVX.O|Abivax|20250106|-140644.2689|-144894.6888|185| |ABVX|ABVX.O|Abivax|20250107|-108074.3762|-90685.1528|185| |ABVX|ABVX.O|Abivax|20250108|-56243.7738|-18646.2371|185| |ABVX|ABVX.O|Abivax|20250110|-105101.9564|-70511.5532|185| |ABVX|ABVX.O|Abivax|20250113|-122271.0788|1194.4558|185| |ABVX|ABVX.O|Abivax|20250114|-68617.4288|-59841.944|185| |ABVX|ABVX.O|Abivax|20250115|-8152.7593|-1607.9549|185| |ABVX|ABVX.O|Abivax|20250116|6828.6963|-4125.05|185| |ABVX|ABVX.O|Abivax|20250117|-16383.8647|-21935.4563|185| |ABVX|ABVX.O|Abivax|20250121|49898.2068|74375.775|185| 3. **High Valuation**: The stock's valuation is extremely high, with a price-to-earnings (P/E) ratio of -3.16, indicating that the company is not profitable as currently reported. The price-to-sales (P/S) ratio is 47.93, which is significantly higher than the industry average. |code|Ticker|Name|Date|P/E(TTM)|P/S|Price to Book Ratio|market_code| |---|---|---|---|---|---|---|---| |ABVX|ABVX.O|Abivax|20240724|-4.56204||3.438579293037851|185| |ABVX|ABVX.O|Abivax|20240725|-4.550491||3.4298740290048446|185| |ABVX|ABVX.O|Abivax|20240726|-4.56589||3.4414810477155204|185| |ABVX|ABVX.O|Abivax|20240729|-4.546641||3.4269722743271753|185| |ABVX|ABVX.O|Abivax|20240730|-4.554341||3.432775783682514|185| |ABVX|ABVX.O|Abivax|20240731|-4.546641||3.4269722743271753|185| |ABVX|ABVX.O|Abivax|20240801|-4.527392||3.41246350093883|185| |ABVX|ABVX.O|Abivax|20240802|-4.608238||3.4734003491698804|185| |ABVX|ABVX.O|Abivax|20240805|-4.254055||3.206438918824326|185| |ABVX|ABVX.O|Abivax|20240806|-4.207857||3.1716178626922966|185| 4. **Resistance and Support Levels**: The stock has a resistance level at $8.57 and a support level at $5.88. The recent closing price of $68.6 is significantly above the support level, which could indicate a potential for a pullback. |code|Ticker|Name|Date|Support Level|Resistance Level|market_code| |---|---|---|---|---|---|---| |ABVX|ABVX.O|Abivax|20250723|5.8825|8.5744|185| 5. **Market Sentiment and Analyst Ratings**: Despite the positive clinical results, the consensus analyst rating is "Outperform," but this is based on one-year price targets that imply a significant downside from the current price. Morgan Stanley has upgraded the stock to "Overweight," but this was after the positive clinical results and is based on a price target of $71, which is below the current price. 6. **Strategic Positioning**: ABVX is strategically focused on developing therapeutics that stabilize the immune response in chronic inflammatory diseases, with a current focus on ulcerative colitis. The company plans to submit a New Drug Application to the FDA and European Medicines Agency in late 2026, contingent on positive results from an ongoing maintenance trial. In conclusion, while ABVX has made significant strides in its clinical trials, the high valuation, lack of profitability, and recent stock surge suggest that it is not a good stock to buy at this moment. Investors should exercise caution and consider the high risk associated with the stock.