AnaptysBio (ANAB) presents an opportunity despite "near-term turbulence," with downside limited by the $100 million stock buyback and potential upside from settlement terms or new rheumatoid arthritis development plans in the first half of 2026, Wedbush Securities said in a note Monday.

Wedbush said it remains "mindful" of the possibility of a settlement in the ongoing legal dispute between AnaptysBio and GSK (GSK) before the scheduled trial date in July 2026.

However, Wedbush analysts said they are not modeling any potential settlement due to lack of detail, in order to remain conservative. Wedbush, however, speculated that a possible outcome could involve GSK continuing development of antibody-drug conjugates with Keytruda in exchange for financial concessions to AnaptysBio.

In relation to the $100 million share repurchase, Wedbush believes it "provides downside protection should volatility drive shares lower in the meantime, and we see the expiration period of March 2026 as suggestive a settlement could be reached before July."

Wedbush also noted that for AnaptysBio management, timeline guidance remains on the separation of the royalty and biopharma businesses by the end of 2026, regardless of the litigation outcome.

Wedbush reiterated its outperform rating on AnaptysBio, with a price target of $50.