Entrada Therapeutics stock rating holds with $20 target

On Monday, H.C. Wainwright maintained a Buy rating and a $20.00 price target for Entrada Therapeutics (NASDAQ:TRDA), emphasizing the company’s potential in the wake of a recent patient fatality linked to a competitor’s therapy. The stock, currently trading at $9.56, has seen significant pressure recently, dropping about 11% in the past week. According to InvestingPro data, analyst targets range from $20 to $30, suggesting substantial upside potential. The incident involved a gene therapy marketed by Sarepta Therapeutics (NASDAQ:SRPT), which resulted in a patient’s death due to acute severe liver injury, a known risk associated with this type of treatment.

Entrada Therapeutics is currently developing a portfolio of exon-skipping therapies, which are considered to be next-generation treatments for Duchenne muscular dystrophy (DMD). These treatments are gaining attention as potentially safer alternatives to gene therapies, which can carry significant safety risks. The company’s strong financial position is evident in its excellent current ratio of 11.15, with InvestingPro analysis showing the company holds more cash than debt on its balance sheet.

The analyst from H.C. Wainwright highlighted the shift in focus towards exon-skipping approaches following the adverse event associated with Sarepta Therapeutics’ ELEVIDYS (delandistrogene moxeparvovec-rokl). The fatality has raised concerns about the safety of adeno-associated viral vector (AAV)-based therapeutic agents. InvestingPro data reveals the company maintains a "GREAT" financial health score, with 10+ additional ProTips available to subscribers covering various aspects of the company’s performance and market position.

As Entrada Therapeutics progresses its candidates through clinical testing, the analyst expects interest in the company’s exon-skipping portfolio to increase. The firm’s positive outlook on Entrada is reflected in the reiterated Buy rating and price target, which suggests a continued confidence in the company’s stock performance over the next 12 months.

The incident with Sarepta’s gene therapy highlights the importance of safety in the development of treatments for DMD, a genetic disorder characterized by progressive muscle degeneration. Entrada Therapeutics’ approach aims to offer a viable and potentially safer alternative to patients suffering from this debilitating disease.

In other recent news, Entrada Therapeutics announced fourth-quarter earnings with a revenue of $37.4 million and earnings per share of $0.03, surpassing both Oppenheimer’s projections and consensus estimates. The company’s progress was further highlighted by the U.K.’s MHRA approval to initiate the ELEVATE-45-201 study, a Phase I/II trial for the drug candidate ENTR-601-45 targeting Duchenne muscular dystrophy (DMD). Oppenheimer maintained an Outperform rating with a $30 price target, reflecting confidence in Entrada’s trajectory and its ability to meet clinical development goals by the end of 2025. Additionally, William Blair reiterated an Outperform rating following the MHRA’s nod, emphasizing the potential of ENTR-601-45 as a next-generation exon skipper. Roth/MKM also upheld a Buy rating with a $23 price target, noting strong preclinical data and positive outcomes from a Phase 1 human volunteer study. The company plans to conduct initial studies in the U.K. and EU, aiming to use the findings for potential registrational studies in the U.S. Entrada’s pipeline includes several investigational drugs, with plans to submit global regulatory applications for ENTR-601-50 and ENTR-601-51 in the coming years. The firm’s progress in both its neuromuscular and other therapeutic areas continues to attract attention from investors and analysts alike.

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