Shares of CRISPR Therapeutics (NASDAQ:CRSP) tanked after TD Cowen, led by analyst Tyler Van Buren, downgraded the stock to Sell with a $30 price target. It cited a high valuation and potential challenges with the launch of its sickle cell disease treatment, Casgevy.
Van Buren is skeptical about the market’s high expectations for Casgevy’s usage, clashing with the company’s estimate of 16,000 eligible patients. He argues that real-world adoption will likely be much lower, especially with Bluebird Bio’s (NASDAQ:BLUE) competing therapy, Lyfgenia, also in the fray.
The investment bank points out that currently, only about 100 patients a year opt for allogeneic transplants due to side effect concerns, a number they believe is comparable to the potential uptake of Casgevy and Lyfgenia. TD Cowen projects this figure might rise to 200-300 annually with the introduction of these new treatments, anticipating Casgevy to capture about 60% of this market, leaving the rest to Lyfgenia.
What is the Target Price for CRSP?
Overall, analysts have a Moderate Buy consensus rating on CRSP stock based on nine Buys, seven Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 45% rally in its share price in 2023, the average CRSP price target of $83.57 per share implies 40.22% upside potential.
