Stifel maintains Precigen stock Buy rating with $7 target

Published 20/03/2025, 14:28
Stifel maintains Precigen stock Buy rating with $7 target

Thursday, Stifel analysts reiterated a Buy rating on Precigen Inc. (NASDAQ:PGEN) shares, maintaining a $7.00 price target. Currently trading at $1.79, the stock has shown remarkable momentum with an 80% gain over the past six months, according to InvestingPro data. The firm’s positive stance follows Precigen’s fourth-quarter 2024 update, highlighting the potential approval of their drug PRGN-2012 for Recurrent Respiratory Papillomatosis (RRP).

The analysts at Stifel expressed confidence in PRGN-2012’s prospects, citing the drug’s meaningful clinical data, which demonstrated a 50% complete response (CR) rate. They noted that the safety data did not present any significant concerns, thereby supporting a high likelihood of approval by regulatory authorities. InvestingPro analysis shows Precigen maintains strong liquidity with a current ratio of 4.76 and holds more cash than debt on its balance sheet, providing financial flexibility for the drug’s development.

The commentary from Stifel also compared Precigen’s position to that of INOVIO Pharmaceuticals, Inc. (NASDAQ:INO), which is developing a competing therapy, INO-3107. Stifel pointed out that INOVIO’s delay in development could provide a favorable situation for Precigen. PRGN-2012 is set to enter a market without approved therapeutic options, relying only on surgery, which is costly and offers limited long-term effectiveness.

Stifel analysts believe that Precigen could benefit not only from the drug’s pricing in a market lacking approved alternatives but also from an initial surge of patients once the drug is available. This anticipation is based on the current absence of durable treatment options for RRP.

In closing, the Stifel report included an update to their financial model for Precigen, which did not result in any changes to the previously set target price of $7 per share. With analyst targets ranging from $6 to $7, the consensus remains bullish on the stock’s potential. The firm’s outlook remains optimistic about Precigen’s commercial opportunities and the potential market impact of PRGN-2012. For deeper insights into Precigen’s financial health and growth prospects, including 12 additional ProTips and comprehensive valuation metrics, visit InvestingPro.

In other recent news, Precigen Inc. has reported a net loss of $126.2 million for the fiscal year 2024, compared to a loss of $95.9 million in 2023. Despite the increased loss, the company maintains a strong cash position with $97.9 million in cash and equivalents, ensuring financial stability into 2026. Cantor Fitzgerald has raised its price target for Precigen to $5, citing confidence in the company’s financial health and the anticipated launch of its lead gene therapy product, PRGN-2012. This product, aimed at treating recurrent respiratory papillomatosis, has received a positive outlook from H.C. Wainwright, which maintains a Buy rating and a price target of $6. The FDA has accepted the Biologics License Application for PRGN-2012, with a set review date in August 2025. Precigen has expanded its manufacturing capacity and partnered with Eversana to support the commercial launch of PRGN-2012. Analysts project that PRGN-2012 could generate significant revenue, potentially reaching $969 million by 2033.

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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