Shares of Editas Medicine (NASDAQ:EDIT) saw an uptick on Friday, following an upgrade by Stifel analyst Dae Gon Ha. The upgrade came with an increase in the price target, reflecting the company's advancement with EDIT-301, a treatment for sickle cell disease and transfusion-dependent beta-thalassemia (TDT) in early-stage clinical trials. The company anticipates completing dosing by the end of 2023.
InvestingPro data shows a market cap of 623.67M USD for Editas, with a negative P/E ratio of -2.64, indicating that the company has not been profitable over the last twelve months. The company's revenue has also been declining at an accelerating rate, with a decrease of -39.26% LTM2023.Q2, and a quarterly decrease of -54.62% FY2023.Q2. These are important factors to consider when evaluating the company's financial health and growth potential.
While Editas trails behind CRISPR Therapeutics and Vertex Pharmaceuticals (NASDAQ:VRTX) in terms of development stage, Ha suggests a valuation for Editas that is similar to CRISPR's current stage. The Food and Drug Administration's (FDA) upcoming decisions on CRISPR and Vertex's exa-cel could potentially impact the positioning of Editas within the industry.
According to InvestingPro Tips, Editas holds more cash than debt on its balance sheet, which is a positive sign for investors as it suggests the company has a strong liquidity position. However, the stock has taken a big hit over the last week, with a 1 week price total return of -11.85%, and a 1 month price total return of -23.62%. This volatility in stock price movements is something investors should be aware of.
It should be noted that despite the positive outlook from Stifel, the Motley Fool Stock Advisor has recommended 10 other stocks over Editas. The implications of these contrasting viewpoints remain to be seen as the biotech sector continues to evolve.
For those interested in a more comprehensive analysis, InvestingPro offers additional tips and real-time metrics. These can provide a more detailed understanding of a company's performance and potential investment risks. To access these, you can visit the InvestingPro site here.
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