JMP maintains $10 target on Prime Medicine stock

Published 19/03/2025, 10:00
JMP maintains $10 target on Prime Medicine stock

On Wednesday, JMP Securities analyst Silvan Tuerkcan maintained a Market Outperform rating on Prime Medicine (NASDAQ:PRME) with a stable $10.00 price target. According to InvestingPro data, the stock currently trades at $1.76, significantly below the analyst consensus range of $6-19. With a market cap of $225 million, InvestingPro analysis suggests the stock is currently undervalued. Tuerkcan highlighted the company’s announcement of its second Prime Editing-based, liver-targeting program aimed at addressing Alpha-1 antitrypsin deficiency (AATD). The expectation is for this pre-clinical program to progress to clinical stages following Investigational New Drug (IND) and/or Clinical Trial Application (CTA) approvals by mid-2026.

Prime Medicine has been developing its Prime Editing technology, a novel genetic editing approach, which recently gained further credibility through validation by a similar method from Beam Therapeutics. The company’s financial health metrics from InvestingPro show a strong current ratio of 5.58, indicating solid short-term liquidity despite challenging market conditions. The company’s focus on AATD with this technology could potentially offer significant advantages for treating the genetic disorder.

AATD is a condition caused by a genetic mutation which leads to liver disease and lung disease due to the lack of a protein called alpha-1 antitrypsin. The development of effective treatments for AATD is critical, as it can have severe health implications for those affected.

Tuerkcan’s reiteration of the Market Outperform rating indicates confidence in Prime Medicine’s approach and potential in the genetic editing space. With the target price set at $10.00, JMP Securities signals its belief in the company’s value and prospects for growth.

Prime Medicine’s advancement towards the clinical trial phase is a significant step in the company’s journey to potentially bring innovative therapies to market. With the IND and/or CTA expected in the next few years, stakeholders will be watching closely for further developments and results from Prime Medicine’s AATD program. The stock has experienced significant volatility, with a -75% return over the past year and a beta of 1.85. For deeper insights into Prime Medicine’s financial health, valuation metrics, and growth potential, access the comprehensive Pro Research Report available exclusively on InvestingPro.

In other recent news, Prime Medicine has made significant strides in its preclinical program for a gene editing therapy targeting alpha-1 antitrypsin deficiency (AATD). The company plans to seek regulatory approval to commence human trials by mid-2026. Utilizing a proprietary lipid nanoparticle delivery system, Prime Medicine’s approach has shown promising results, with up to 72% mutation correction in hepatocytes and restoration of normal protein levels in a humanized mouse model. In parallel, the company’s PM359 therapy, aimed at treating chronic granulomatous disease (CGD), has received both rare pediatric drug and orphan drug designations. The Investigational New Drug application for this therapy was approved in April 2024, and a Phase 1/2 clinical trial began in the third quarter of 2024 in the United States, with data expected in 2025. Citizens JMP reiterated its Market Outperform rating for Prime Medicine, maintaining a $10 price target, citing the derisked nature of the company’s ex-vivo hematopoietic stem cell editing technology. The analyst emphasized the importance of early interim data from the ongoing trial, particularly focusing on safety and biomarker levels. These developments highlight Prime Medicine’s continued efforts in advancing gene editing therapies for rare diseases with unmet medical needs.

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