BofA cuts Intellia stock target to $39, maintains Buy rating

On Thursday, BofA Securities analyst Greg Harrison adjusted the price target for Intellia Therapeutics (NASDAQ:NTLA) stock, reducing it to $39.00 from the previous $43.00, while still holding a Buy rating on the company’s shares. According to InvestingPro data, this target remains well above the current trading price of $9.66, with analyst targets ranging from $8 to $106. The revision follows a reported adverse event in a key clinical trial.

Intellia’s stock experienced an 18% decline after hours following the disclosure of a grade 4 liver transaminase elevation in a patient participating in the phase 3 MAGNITUDE study for the treatment known as nex-z, aimed at addressing ATTR-CM, a cardiac condition. The event was noted to be asymptomatic and has since decreased in severity without the need for hospitalization or medical intervention, as detailed in the company’s 8K filing. InvestingPro analysis shows the company maintains a strong liquidity position with a current ratio of 4.9x, providing some financial cushion during these clinical developments.

The analyst expressed caution, anticipating that the safety concerns could linger over the program until more data becomes available, despite the previously clean safety profile. The impact of this event is particularly significant as the ATTR-CM population represents the largest target market for Intellia’s therapy, compared to other conditions such as ATTR-PN and HAE.

Harrison emphasized the importance of obtaining further information about the safety incident, its connection to the treatment, and forthcoming results from the MAGNITUDE study to assess the likelihood of such events reoccurring. Despite the setback, the firm reiterated its Buy rating on Intellia’s stock, citing the potential for nex-z to serve as a one-time treatment option for both HAE and ATTR markets. However, BofA Securities has adjusted the probability of success for the treatment in ATTR-CM from 35% to 30%, pending additional safety data. InvestingPro reveals two key insights: the company holds more cash than debt on its balance sheet, and its stock price movements have been notably volatile. Subscribers can access 8 additional ProTips and a comprehensive Fair Value analysis in the Pro Research Report.

In other recent news, Intellia Therapeutics reported better-than-expected earnings for the first quarter of 2025. The company achieved an earnings per share (EPS) of -$1.10, surpassing the forecasted -$1.27, and its revenue reached $16.63 million, exceeding the anticipated $12.79 million. Intellia is making significant progress in its Phase 3 clinical trials, including the HAELO study for NTLA-2002, which targets hereditary angioedema, and the MAGNITUDE-2 study for transthyretin amyloidosis with polyneuropathy. The company plans to complete enrollment for these trials by 2025 and 2028, respectively, with potential U.S. commercial launches following regulatory approvals.

Additionally, Guggenheim Securities adjusted its price target for Intellia to $45, maintaining a Buy rating, citing the potential size of the ATTR-CM treatment market. Meanwhile, Citizens JMP reiterated a Market Perform rating on Intellia following a disclosure of a Grade 4 liver toxicity event during a clinical trial, which has since been clarified as less severe than initially feared. This adverse event was classified as a laboratory abnormality, and the patient’s condition is improving. Intellia continues to monitor its financial strategies, with cash reserves reported at $707.1 million as of March 31, 2025, and is exploring non-dilutive financing options to support its strategic initiatives.

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