OmniAb Inc (OABI) Stock Forecast & Price Target

OmniAb is attractive because its differentiated Biological Intelligence platform and engineered transgenic animals create a scalable source of optimized antibody candidates, while xPloration broadens that moat with high-throughput, low-cost screening for the $7B lab-in-the-loop opportunity. The company also has a growing, high-quality partner base, including Eli Lilly, with up to $370M in potential milestones plus tiered royalties, and management expects $2M–$3M of xPloration revenue in 2026 with doubling in 2027 and 2028. Fundamentally, the outlook is supported by a maturing royalty aggregation model with 425 active programs and 98% downstream economics, where milestone revenue already contributes and future royalty streams could flow with limited incremental cost.

OmniAb is vulnerable because most of its value depends on downstream milestones and royalties from partner assets, so any delay or failure in approvals would directly pressure valuation and cash generation. Near-term caution in biopharma capital spending could slow program adds and reduce partner growth, while the risk that AI models generate high-performing sequences de novo could make animal immunization less relevant and commoditize OmniAb’s technology. If its patents weaken or access to the platform becomes less differentiated, partner economics and deal terms could deteriorate, undermining the business model that currently drives revenue.