CRISPR Therapeutics (CRSP) has underperformed the market and my expectations over the past year. In fact, the stock has lost a third of its share price value and is trending lower.
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However, I think the bears have overplayed their hand because the stock is looking valuable again, with its enterprise value now sitting below peak sales expectations for its first gene-editing therapy. I’m bullish primarily because the stock is fundamentally undervalued and my confidence in the underlying technology, but I’m also cognizant of the company becoming a takeover target later this year.
CRISPR Therapeutics Offers Attractive Proposition at Bargain Prices
I’m bullish on CRISPR Therapeutics, a leading gene-editing company that develops transformative gene-based medicines for serious diseases using its proprietary CRISPR/Cas9 platform. The company’s flagship treatment, Casgevy, received FDA approval for sickle cell disease and transfusion-dependent beta-thalassemia in late 2023, marking a significant milestone as the first CRISPR-based therapy to reach the market.
Moreover, CRISPR Therapeutics’ product pipeline extends beyond Casgevy, with promising programs in oncology, autoimmune diseases, and in vivo gene editing. Their allogeneic CAR-T cell therapy, CTX112, has shown encouraging results in B-cell malignancies and is being explored for lupus treatment. Additionally, the company is advancing in vivo gene editing programs targeting cardiovascular diseases, with further data expected in 2025. It’s all very encouraging and exciting from medical and consumer perspectives. For investors, CRISPR stock offers several potential share price catalysts throughout 2025.
While CRISPR Therapeutics’ stock has declined over the past 12 months, likely influenced by struggles at competitor Editas Medicine (EDIT), the company remains in a strong position with distinct advantages. In contrast to Editas and other peers, the strategic partnership with Vertex Pharmaceuticals (VRTX) — an established pharma giant — has provided stability and contributed to Casgevy’s successful development and approval.
Moreover, CRISPR Therapeutics has a favorable financial position with approximately $1.9 billion in cash, providing a significant runway for pipeline advancement and Casgevy’s commercial launch. The company’s diverse pipeline, first-mover advantage with Casgevy, and strong partnerships make it an attractive stock for investors looking to capitalize on this revolutionary technology and its impact on modern medicine.
Bears Overreach as CRISPR Stock Offers Hidden Value
My bullishness is also reinforced by ongoing developments with Casgevy, despite slower-than-anticipated uptake following its historic approval some 14 months ago. In December, Vertex reported that 45 treatment centers had been set up worldwide to support the therapy delivery while 40 patients had their cells collected, marking the start of the treatment.
Despite the initial slow rollout, many analysts remain optimistic about Casgevy’s potential. William Blair projects peak sales of $3.6 billion, expecting to eventually reach a $3 billion or more annualized run rate.
It’s also worth noting that patient demand will likely grow as more data becomes available (the trial is still ongoing) and accessibility improves. Investors should also recognize that Casgevy treatment, which includes chemotherapy, is very demanding on patients.
However, the company remains optimistic. As of January 2025, CRISPR Therapeutics says that Casgevy’s launch continues to gain momentum, driven by robust patient demand and payer support. This progress, coupled with ongoing global regulatory approvals and further program updates, suggests that 2025 will be a bountiful year for share price catalysts.
CRISPR’s Low Valuation Attracts Buyers
My positivity on the stock is reinforced by the company’s valuation. With $1.9 billion in cash and a market valuation of $3.4 billion, the firm’s enterprise value stands at $1.7 billion. While forward multiples for the current year are relatively expensive, the stock is trading with an EV-to-Sales ratio of 1.1 for 2028, according to sales projections from a consensus of 11 analysts. For context, 2028 is by no means the peak of analysts’ expectations. According to the consensus, sales are anticipated to grow from $1.6 billion in 2028 to $5.6 billion in 2030.
In short, despite the consensus not indicating profitability until 2028, the metrics and CRISPR’s world-leading position in gene editing suggest the stock is undervalued.
Market Vultures Circle Their Prey
Several analysts have pointed out that CRISPR Therapeutics could become a takeover target in 2025, which reinforces my bullish stance and sets up the possibility of positive surprises helping CRISPR investors. From the potential list of suitors, Vertex is currently the front-runner, having helped finance the Casgevy program and being CRISPR’s delivery partner. Given that earnings from the Casgevy program will be shared between the two companies (40% for CRISPR), Vertex may find additional interest in the current valuation.
Is CRISPR Therapeutics a Buy, Hold, or Sell?
On TipRanks, CRSP is rated as a Moderate Buy based on 20 analyst ratings. Currently, CRSP stock carries 10 Buy, eight Hold, and two Sell ratings assigned by analysts over the past three months. The average CRSP stock price target is $65.75, implying approximately 48% upside potential.
Undervalued and Oversold CRISPR is a Bargain
I’m bullish on CRISPR Therapeutics stock because of its pioneering gene-editing platform, strategic partnership with Vertex Pharmaceuticals, and industry-leading pipeline targeting significant medical needs. Moreover, it is priced at bargain-basement levels, improving the medium-long-term investment case for a company developing the technology for tomorrow’s world. Despite its pre-profit status, the company’s strong financial position, promising sales projections, and takeover target potential suggest substantial upside in 2025. With several catalysts promised this year, 2025 could be transformative for the stock.
