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Tuesday, Citi analysts reiterated a Buy rating with a $45.00 price target on LENZ Therapeutics Inc (NASDAQ:LENZ), maintaining a positive outlook on the company’s prospects. Trading at $31.22, the stock has garnered strong analyst support, with consensus recommendations showing a Strong Buy rating and price targets ranging from $36 to $60. The firm’s analysts highlighted the potential FDA approval of LNZ100 (aceclidine) by the PDUFA date on August 8, 2025, as a significant upcoming milestone for the company.
LENZ Therapeutics’ management team recently informed that they had a successful Late Cycle FDA meeting, where neither major nor minor review issues were raised. According to InvestingPro data, the company maintains a healthy financial position with a current ratio of 23.09, indicating strong liquidity to support its commercialization efforts. The analysts expressed confidence in the approval process, particularly since aceclidine has already been marketed in Europe as a treatment for glaucoma, which supports its safety profile and mechanism of action (MoA).
The endorsement by Citi comes as the company prepares to transition from the development phase toward commercialization. The analysts underscored the strength of LENZ Therapeutics’ management team, including a VP of marketing with a track record of successful launches, notably including the energy drink brand RedBull. InvestingPro analysis indicates the company maintains a GOOD overall financial health score, though it’s currently not profitable with a -$1.77 EPS.
The analysts at Citi see LENZ Therapeutics as a compelling investment opportunity, describing the company as "highly derisked" and on the cusp of a commercial breakthrough. They anticipate that the expected FDA approval will serve as the next value inflection point, further enhancing the company’s market position.
LENZ Therapeutics continues to progress toward the anticipated approval date, backed by a seasoned management team and a product with an established safety profile. The company’s strategy and potential for growth remain points of interest for investors following the biopharmaceutical sector.
In other recent news, LENZ Therapeutics Inc. has reported its financial results for the first quarter of 2025, revealing a strong cash position of $194.1 million despite a net loss per share of $0.53. The company is advancing its presbyopia treatment, LNZ100, with a PDUFA target date set for August 8, 2025. LENZ has also entered into an exclusive licensing agreement with Lotus Pharmaceutical (TADAWUL:2070) Co. for the commercialization of LNZ100 in Korea and select Southeast Asian countries, potentially earning up to $125 million in payments plus royalties. This partnership aims to leverage Lotus’s commercial infrastructure in these regions. Additionally, LENZ Therapeutics has been expanding its sales force, with over 40% of offers accepted by experienced professionals, as part of its strategy to capture a share of the estimated $3 billion presbyopia market in the U.S. The FDA has accepted LENZ’s New Drug Application for LNZ100 and does not plan to convene an Advisory Committee Meeting for the application. Analyst feedback from the recent earnings call suggests confidence in the company’s strategic direction and market potential.
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