Precision BioSciences upgraded to Outperform at BMO on favorable risk/reward

Published 10/01/2025, 13:24
Precision BioSciences upgraded to Outperform at BMO on favorable risk/reward

On Friday, BMO Capital Markets analysts upgraded Precision BioSciences Inc . (NASDAQ: NASDAQ:DTIL) stock rating from Market Perform to Outperform, setting a price target of $34.00. This optimistic outlook comes in the wake of iECURE's announcement of promising clinical data using DTIL's in vivo gene editor, ARCUS.

The clinical data presented by iECURE pertains to the treatment of Ornithine Transcarbamylase (OTC) deficiency using DTIL's ARCUS technology. Despite the small sample size, with the study involving a single patient, the results have been encouraging. They serve as early clinical validation for ARCUS, suggesting potential in treating OTC using this technology.

BMO Capital's analysis estimates a roughly 65% chance for Precision BioSciences' in vivo Hepatitis B Virus (HBV) program to demonstrate acceptable safety, defined as Grade 3 or lower adverse events (AEs), along with robust efficacy.

This includes clearance of the Hepatitis B surface antigen (HBsAg) and the possibility of patients being able to discontinue nucleoside analogs. Such outcomes could propel the stock's value to increase by 100-200% or more, a surge akin to the recent gains seen by Sana Biotechnology.

The analysts also note that Precision BioSciences' current market valuation is approximately one-third of its net cash position, which is expected to fund operations into the second half of 2026. This financial stability, combined with the promising clinical data, leads BMO Capital to view the risk/reward profile for Precision BioSciences as favorable, warranting the upgrade to an Outperform rating and reiteration of the $34 price target.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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