Analyst Alec Stranahan of Bank of America Securities reiterated a Sell rating on Editas Medicine (EDIT – Research Report), retaining the price target of $1.00.
Alec Stranahan has given his Sell rating due to a combination of factors including Editas Medicine’s strategic shift and competitive pressures. The company has recently focused on developing its in vivo programs after discontinuing the reni-cel program due to a lack of commercial partnerships. While initial data from the in vivo HSC program is promising, with notable editing percentages, investors are likely waiting for human proof-of-concept results before committing, especially as competition in the in vivo space intensifies with other companies like Beam and CRISPR entering similar markets.
Additionally, Editas is undergoing significant restructuring, including a 65% reduction in workforce, and is expected to declare new in vivo candidates by mid-2025. Despite these efforts, the lack of immediate value inflection points and the transfer of future license fees to DRI Healthcare Acquisitions LP contribute to the cautious outlook. The company’s cash runway extends into the second quarter of 2027, but the anticipated human proof-of-concept data in 2026 remains a critical milestone for the in vivo strategy’s success.
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