In a report released on April 7, Robert Burns from H.C. Wainwright reiterated a Buy rating on Prelude Therapeutics (PRLD – Research Report), with a price target of $5.00.
Robert Burns’s rating is based on a combination of factors including Prelude Therapeutics’ financial position and upcoming clinical data. The company ended 2024 with a solid cash reserve of approximately $133.6 million, which is expected to support operations until the second quarter of 2026. This financial stability provides a strong foundation for continued research and development activities.
Additionally, anticipated catalysts such as updated results from the Phase 1 trial of PRT3789 in SMARCA4-mutated cancers and interim data from the PRT7732 trial in the second half of 2025 are significant. These developments could potentially enhance the company’s valuation. The discounted cash flow analysis, using an 11% discount rate and a 2% terminal growth rate, supports a market value of $353 million, aligning with a 12-month price target of $5 per share. However, risks such as negative clinical outcomes and competitive pressures remain considerations for investors.
Based on the recent corporate insider activity of 15 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of PRLD in relation to earlier this year.