CRISPR Surges 16% as Cantor Fitzgerald Assigns $72 PT

CRISPR Therapeutics AG (NASDAQ:CRSP) is something of a hot-button topic by virtue of its very existence. But one analyst, in particular, is less interested in the controversy than in the potential involved in this biotech stock. The resulting fresh coverage with a positive rating helped send CRISPR up over 16% in Thursday afternoon’s trading.

Cantor Fitzgerald analyst Olivia Brayer came out with the latest perspective, declaring CRISPR “overweight” and giving it a price target of $72. The biggest reason Brayer cited was the likelihood that the FDA would offer up approval for CRISPR’s exa-cel, a gene-editing therapy system.

The exa-cel system is designed to treat at least two diseases so far: sickle-cell anemia and beta-thalassemia that’s dependent on transfusions. Brayer noted that CRISPR, along with partner Vertex Pharmaceuticals (NASDAQ:VRTX), now has a “very good chance” to bring out the first commercial CRISPR gene therapy and, with it, a functional cure for sickle-cell anemia. Cantor’s estimates now look for a 90% chance of success on the FDA approval and for the exa-cel system to ultimately yield over $1.6 billion in sales.

That’s not all that CRISPR has brought out lately. A report from Nature Communications noted that CRISPR-Cas could kill “multidrug-resistant pathogens” by “inducing cell dormancy/death upon their inactivation.” Moreover, CRISPR/Cas9’s shortcomings also may have been addressed with what’s called the “safeguard-sgRNA strategy.” That’s a measure that uses what’s known as “synthetic guide RNA” to produce a better way to introduce altered genes.

Analysts are fairly well split on CRISPR’s future, though. Currently, the consensus calls it a Moderate Buy, with 10 Buy ratings, seven Holds, and one Sell. Further, with an average price target of $77.36, CRISPR stock enjoys 53.07% upside potential.

Disclosure