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Investing.com - JMP Securities has reiterated its Market Outperform rating and $6.00 price target on Prime Medicine (NASDAQ:PRME), currently trading at $4.13 with a market cap of $541 million, following the company’s announcement of additional funding from the Cystic Fibrosis Foundation. According to InvestingPro data, the stock has gained over 41% year-to-date, with analysts maintaining a bullish consensus.
Prime Medicine secured up to $24 million in funding from the Cystic Fibrosis Foundation to accelerate the development of Prime Editors for cystic fibrosis, according to JMP analyst Silvan Tuerkcan.
The analyst described the funding as "additional incremental good news in a positive environment" for the gene editing company, noting that stocks in this sector have been outperforming since the Verve Therapeutics deal shifted sentiment.
JMP maintained its $6 price target, which is derived from discounted cash flow analysis, citing Prime Medicine’s focus on in-vivo programs and business development opportunities.
The firm believes these factors "can provide significant value" for Prime Medicine as it continues to develop its gene editing technology for cystic fibrosis and other applications.
In other recent news, Prime Medicine announced it has secured up to $24 million in funding from the Cystic Fibrosis Foundation to advance therapies using its prime editing technology. This funding will be disbursed in two tranches, with the first including a $6 million equity investment. Despite this development, H.C. Wainwright reiterated a Neutral rating, highlighting ongoing financial and legal uncertainties. Meanwhile, JMP Securities maintained its Market Outperform rating but reduced the price target to $6.00, citing Prime Medicine’s strategic shift to focus on broader in-vivo applications. Citi analysts downgraded Prime Medicine from Buy to Neutral, lowering the price target to $1.50 due to concerns about the company’s financial runway and the absence of significant business development deals. Citi emphasized the need for non-dilutive capital to support Prime Medicine’s clinical programs. JMP Securities also noted that Prime Medicine might require $100 million to $150 million in additional funding to reach proof-of-concept data for its Wilson’s Disease program. Despite these challenges, analysts recognize Prime Medicine’s potential in gene editing and its efforts to secure non-dilutive funding through collaborations and partnerships.
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