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Thursday, H.C. Wainwright reaffirmed a Buy rating on Precision BioSciences Inc . (NASDAQ:DTIL) with a steady price target of $60.00, significantly above the current trading price of $5.65. The endorsement follows Precision’s announcement of preliminary safety and antiviral activity data from their Phase 1 trial of a gene editing therapy for chronic hepatitis B. According to InvestingPro data, the stock has shown strong momentum with an 11.66% gain over the past week, while analyst targets range from $19 to $60, suggesting significant upside potential.
On Sunday, Precision BioSciences released initial findings from the ELIMINATE-B study, which is evaluating PBGENE-HBV, their gene editing therapy candidate. This treatment, delivered via lipid nanoparticles, targets the hepatitis B virus (HBV) in individuals with chronic HBV infection. The data revealed substantial antiviral activity in two out of three patients at the lowest dose level, with a favorable safety profile. The company, currently valued at $43.19 million, maintains a strong financial position with a current ratio of 9.22, indicating robust liquidity to support its clinical programs.
The analysts at H.C. Wainwright expressed optimism regarding these findings, suggesting that they could reduce the perceived risks associated with Precision’s ARCUS gene editing platform. The positive results from this trial also complement earlier proof-of-concept data from another of Precision’s gene editing therapies, ECUR-506, further bolstering confidence in the company’s strategic focus on in vivo gene editing therapeutics.
Precision BioSciences plans to proceed with additional administrations for all participants in the first cohort of the trial. The analysts believe that the initial data from the PBGENE-HBV program not only demonstrate the first clinical evidence of in vivo gene editing therapy in chronic HBV but also affirm the potential of Precision’s ARCUS platform in developing effective gene editing treatments.
The reiteration of the Buy rating and the $60 price target by H.C. Wainwright reflects the firm’s anticipation of Precision BioSciences’ continued progress in its gene editing therapy programs and the potential for these innovative treatments to transform the management of chronic HBV and other genetic diseases. InvestingPro analysis suggests the stock is currently undervalued, trading at a P/E ratio of 3.85, with multiple positive indicators including expected net income growth and strong financial health metrics. Discover more insights and 8 additional ProTips by subscribing to InvestingPro.
In other recent news, Precision BioSciences has made headlines with several key developments. The company recently announced promising results from a Phase 1/2 clinical trial conducted by its partner iECURE, which demonstrated a complete clinical response in the first infant dosed for Ornithine Transcarbamylase (OTC) deficiency using Precision’s ARCUS® gene editing platform. This positive outcome has bolstered confidence in the platform’s potential. Additionally, Precision BioSciences has been upgraded to "Outperform" by BMO Capital, with a price target set at $34.00, citing favorable risk/reward prospects following the successful trial results.
In financial updates, Precision BioSciences reported an estimated $108.5 million in cash reserves as of the end of 2024, projecting a cash runway into the second half of 2026. The company also received a $2.5 million deferred payment from TG Therapeutics (NASDAQ:TGTX) as part of a license agreement. Furthermore, Precision BioSciences received approval for its Clinical Trial Application in Hong Kong for PBGENE-HBV, marking a significant step in its efforts to combat chronic hepatitis B.
In governance news, Dr. Sam Wadsworth announced his retirement from the company’s Board of Directors, effective January 2025, with no immediate successor named. This change is part of the company’s regular governance processes and is not expected to impact its strategic direction. These developments reflect Precision BioSciences’ ongoing efforts to advance its clinical programs and strengthen its financial position.
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