OmniAb Inc (OABI) Stock Forecast & Price Target

OmniAb is well positioned for long-term value creation because its royalty aggregation model is nearing a more meaningful, durable revenue phase, with a portfolio of 425 active programs, 98% carrying downstream economics, and estimated milestone potential of more than $3B. Its differentiated Biological Intelligence platform, proprietary immune-repertoire datasets, and xPloration tool strengthen the discovery workflow by offering high throughput, low cost, and reliability, while management expects xPloration revenue of $2M–$3M in 2026, doubling in both 2027 and 2028. The Eli Lilly collaboration, up to $370M in potential milestones, and raised 2026 year-end cash guidance to $49M–$53M further validate the platform and support growth with minimal added cost.

OmniAb is exposed to a business model that depends heavily on downstream milestones and royalties, so any delay or failure in partner asset approvals can materially weaken valuation and cash generation. Its access-to-technology revenue stream also faces structural risk from commoditization, patent invalidation, and emerging AI models that could generate high-performing sequences de novo, potentially making animal immunization less relevant. Near-term caution in biopharma capital spending and broader uncertainty around partner program adds could slow growth, while the company’s upcoming December launch at the AET conference does not offset these fundamental risks.