Editas Rises 8.2% on Narrower-Than-Expected Q3 Loss

Shares of Editas Medicine, Inc. (EDIT) gained 8.2% on Monday after the company reported stronger-than-expected third-quarter results.

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Collaboration and other research and development revenues stood at $6.2 million, down 90% from the same quarter last year. The figure, however, surpassed the consensus estimate of $4.8 million.

During the quarter, the company reported a net loss of $0.57 per share against the consensus estimate of a loss of $0.82 per share. Editas had posted earnings of $0.12 per share in the same quarter last year. (See Editas stock chart on TipRanks)

James C. Mullen, the Chairman, President and CEO of Editas, said, “We have also continued to make excellent progress advancing our broader clinical and preclinical programs, including the expansion of our gene editing capabilities, as exemplified by our proprietary SLEEK knock-in technology, which we are already applying in our iNK program for solid tumors.”

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Price Target

Following the results, Chardan Capital analyst Geulah Livshits maintained a Buy rating on Editas with a price target of $75. The price target implies 81.6% upside potential.

Livshits noted, “We continue to view Editas’s iNK platform as its most interesting program in the long term. Although the program is not yet close to the clinic (with no named development candidate), we understand management may opt to partner with an experienced oncology player in the not-too-distant future, potentially accelerating timelines to value capture from the iNK platform.”

Based on 6 Buys and 2 Holds, the stock has a Strong Buy consensus rating. The average Editas price target of $60.86 implies 50% upside potential from current levels.

Risk Analysis

Investors should always be aware of the risks involved in any stock. According to the new TipRanks’ Risk Factors tool, EDIT is at risk mainly from two factors: Tech & Innovation and Finance & Corporate, which contribute 37% and 24%, respectively, to the total 70 risks identified for the stock.