Prelude Therapeutics, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Robert Burns from H.C. Wainwright reiterated a Buy rating on the stock and has a $5.00 price target.
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Robert Burns has given his Buy rating due to a combination of factors that highlight the potential of Prelude Therapeutics’ SMARCA2-targeted degraders. The company is expected to release additional data for these degraders by the end of the year, with significant catalysts anticipated from the presentation of final results from a Phase 1 trial of PRT3789 in SMARCA4-mutated cancers and initial interim data from the Phase 1 trial of PRT7732 by the end of 2025. Prelude’s decision to focus on PRT7732, which has shown promising clinical profiles including oral once-daily dosing and high target degradation, further supports the positive outlook.
From an efficacy standpoint, PRT3789 has demonstrated dose-dependent increases in exposure and significant efficacy in treating SMARCA4-mutated cancers, with confirmed partial responses in patients with non-small cell lung cancer and upper GI cancer. The valuation approach used by Burns, which includes a discounted cash flow model with specific assumptions, results in a market value of $417 million and a 12-month price target of $5 per share. Despite the risks associated with clinical results, regulatory approvals, and competitive pressures, the potential benefits and promising data support the Buy rating for Prelude Therapeutics.
Burns covers the Healthcare sector, focusing on stocks such as Replimune Group, Exelixis, and Enliven Therapeutics. According to TipRanks, Burns has an average return of -11.5% and a 35.00% success rate on recommended stocks.