On Friday, BMO Capital Markets adjusted its outlook on Intellia Therapeutics (NASDAQ:NTLA) stock, reducing the price target to $50 from the previous $70 while maintaining an Outperform rating. The revision comes as Intellia Therapeutics shared its strategic plan looking forward to 2025, which includes a focus on the execution of Phase III trials for ATTR and HAE with an aim for HAE approval by 2027.
According to InvestingPro data, the stock is currently trading near its 52-week low of $11.34, having declined over 58% in the past year. Additionally, the company announced the discontinuation of its AATD program, which is expected to extend its financial runway into the first half of 2027, from a prior estimate of late 2026.
BMO Capital analysts noted that while the discontinuation of the AATD program is seen as a positive step that could alleviate financing concerns for Intellia, there might be investor apprehension regarding the timing of this decision, especially as Phase I trials had just commenced. The new price target takes into account the removal of NTLA-3001 from projections and assumes zero percent terminal growth.
Despite the reduction in the price target, BMO Capital continues to view Intellia Therapeutics as undervalued, citing an enterprise value of approximately $300 million against the backdrop of three Phase III programs. This assessment aligns with InvestingPro’s Fair Value analysis, which suggests the stock is currently undervalued. While the company maintains strong liquidity with a current ratio of 6.73, investors should note that Intellia is rapidly burning through cash, as revealed by one of the 10+ additional ProTips available on InvestingPro.
The strategic plan laid out by Intellia emphasizes the company’s commitment to advancing its clinical trials for treatments targeting ATTR amyloidosis and hereditary angioedema (HAE), with the latter expected to receive approval in about four years. This forward-looking focus is critical for Intellia’s growth and potential to bring new therapies to market.
Intellia Therapeutics, listed on NASDAQ:NTLA, is part of the biotechnology industry, which is known for its high levels of investment in research and development, often leading to volatility in stock prices as clinical trial outcomes and strategic decisions heavily influence investor sentiment.
With a market capitalization of $1.03 billion and significant cash reserves exceeding its debt obligations, detailed analysis of Intellia’s financial health and growth prospects is available in the comprehensive Pro Research Report, exclusively on InvestingPro.
In other recent news, Intellia Therapeutics has announced a strategic reorganization, focusing on key programs such as NTLA-2002 for hereditary angioedema (HAE) and nexiguran ziclumeran (nex-z) for transthyretin (ATTR) amyloidosis.
The reorganization includes workforce reduction and discontinuation of certain research-stage programs, with the company expecting to incur approximately $8 million in reorganization charges. Despite these changes, Intellia ended the fourth quarter of 2024 with a strong cash position of approximately $862 million, expected to fund operations into the first half of 2027.
BofA Securities and Oppenheimer have both adjusted their outlook on Intellia’s stock, reducing their price targets but maintaining their positive ratings. BofA views the extension of Intellia’s cash runway as a positive outcome, while Oppenheimer highlights the company’s recent achievements, including positive results from a Phase 2 study of NTLA-2002 in HAE.
Intellia also reported significant updates during its Third Quarter 2024 Earnings Call, including a decrease in cash reserves to $944.7 million, primarily due to operational expenses. However, the company anticipates that its cash reserves will fund operations until late 2026. The earnings call also highlighted positive results for NTLA-2002, a CRISPR-based treatment for Hereditary Angioedema, and the progression of other key programs.
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