Summary

  • Editas Medicine received a rating upgrade from broker Citi to 'buy' from ‘neutral’.
  • The broker is positive on the gene therapy for sickle cell disease being developed by Editas.
  • EDIT has a mean recommendation rating of 2.4 on five and has a consensus mean price target of US$13.60.

Brokerage house Citi has increased its rating on  gene editing company Editas Medicine (NASDAQ: EDIT) from 'neutral' to 'buy'. The broker believes that there exists the potential for a positive short-term stock price rise on two key catalysts through the end of the year.

EODHD/Others data suggests that EDIT has a mean recommendation rating of 2.4 on five. Here, one signifies a ‘strong buy’ rating and five stands for a ‘strong sell’ rating.

A total of eighteen analysts have covered the stock, of which three have given EDIT a ‘strong buy’ rating. Five analysts believe the stock is a ‘buy’ and nine analysts have given EDIT a ’hold’ recommendation. Additionally, one analyst has also given EDIT a ‘sell’ rating.

EDIT Price Chart; Source: EODHD/Others

As at the market close on Tuesday, October 24, 2023, EDIT stock price was almost 26% lower on YTD basis. EDIT closed at US$6.57 on Tuesday. The stock hit its 52-week high of US$14.23 on November 2, 2022. Earlier this month on October 23, the stock hit its lowest level in 52 weeks, at  US$6.0799.

Brokers see a 100% upside on Editas stock price

As per EODHD/Others, EDIT has a consensus mean price target of US$13.60, which marks a potential increase of 107% over Tuesday’s closing price.

Among the recent price target upgrades, comes Stifel Nicolaus’ price target upgrade to US$17 on September 28, 2023. Alternatively, broker Chardan Capital lowered its price target on EDIT to US$19 on August 2, 2023.

Meanwhile, brokers raised their recommendation ratings on EDIT. Wells Fargo increased the stock to an ‘overweight’ rating on September 8, 2023. Truist Securities also increased its rating on EDIT to ‘buy’ in early August.

However, Leerink Partners maintained a ‘market perform’ rating on the stock as on October 18, 2023. TD Cowen also kept its ‘outperform’ rating intact on the stock.

Sickle cell disease gene therapy likely to provide an impetus

Citi stated that there may be important insights gained from the upcoming FDA advisory panel meeting regarding the gene editing therapy called exa-cel, which is developed as a collaboration between Vertex Pharmaceuticals and CRISPR Therapeutics AG.

This panel meeting is scheduled for October 31 and will focus on the use of exa-cel as a treatment for sickle cell disease, a genetic blood condition characterized by faulty hemoglobin.

It's worth noting that EDIT is also working on a similar therapy for sickle cell disease that is based on gene editing. The brokerage expects that the new data from EDIT-301, EDIT's experimental cell therapy, will involve a substantial number of patients.

This will allow for a more thorough evaluation of its effectiveness and safety profile. EDIT-301 is currently undergoing early-stage trials in patients with sickle cell disease and those with beta thalassemia, another inherited blood disorder.