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Prelude Therapeutics
(NASDAQ:PRLD)
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Rating:45Neutral
Price Target:
$3.00
▼(-52.68% Downside)
Action:Reiterated
Date:10/15/26
Overall score is held down primarily by persistent large operating/net losses and still-negative free cash flow, alongside weak technical momentum (below key moving averages with negative MACD). Offsetting factors include clear revenue growth, improved cash burn versus prior years, a relatively low-debt balance sheet, and a positive regulatory milestone (IND clearance) that strengthens near-term pipeline momentum.
Positive Factors
Revenue scaling and gross margin
Revenue has expanded materially while reported gross margin remains very high, indicating stronger commercial activity and favorable economics on existing revenue. If growth continues, this combination could provide a stronger base for funding pipeline development and eventually improving operating leverage.
Negative Factors
Persistent operating losses
Prelude remains deeply unprofitable, with losses several times larger than reported revenue. Continued operating deficits limit internal funding capacity and mean that revenue growth has not yet translated into a self-sustaining business, leaving profitability dependent on future execution and financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue scaling and gross margin
Revenue has expanded materially while reported gross margin remains very high, indicating stronger commercial activity and favorable economics on existing revenue. If growth continues, this combination could provide a stronger base for funding pipeline development and eventually improving operating leverage.
Read all positive factors
Prelude Therapeutics (PRLD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$289.69M
Dividend YieldN/A
Average Volume (3M)526.75K
Price to Earnings (P/E)―
Beta (1Y)1.35
Revenue Growth220.34%
EPS Growth55.73%
CountryUS
Employees79
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.79
Shares Outstanding65,075,350
10 Day Avg. Volume546,560
30 Day Avg. Volume526,749
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)3.25
Price to Sales (P/S)18.38
P/FCF Ratio-3.96
Enterprise Value/Market Cap1.35
Enterprise Value/Revenue17.41
Enterprise Value/Gross Profit17.71
Enterprise Value/Ebitda-6.63
Forecast
1Y Price Target
$10.00Price Target Upside57.73% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.42
Revenue Forecast (FY)$39.23M
Prelude Therapeutics Business Overview & Revenue Model
Company Description
Prelude Therapeutics, Inc. is a clinical-stage precision oncology company focused on identifying and developing innovative, targeted cancer treatments for patient populations with unmet medical needs. Its pipeline includes PRT543, currently underg...
Prelude Therapeutics Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The earnings call highlights strategic advancements and a strong financial partnership with Incyte, positioning Prelude well for future development. However, challenges remain in differentiating their products in competitive spaces and ensuring timely clinical progress.Positive Updates
Strategic Decisions and Financial Position
Prelude Therapeutics has made strategic decisions to focus on R&D, optimize capital allocation, and align business strategy with high-probability success programs. These efforts have strengthened their financial position, providing additional cash runway into 2027.
Negative Updates
Potential Competition
The presence of competitors in both JAK2 and KAT6A spaces, including established players like Pfizer, poses a challenge in differentiating Prelude's offerings.
Read all updates
Q3-2025 Updates
Positive
Negative
Strategic Decisions and Financial Position
Prelude Therapeutics has made strategic decisions to focus on R&D, optimize capital allocation, and align business strategy with high-probability success programs. These efforts have strengthened their financial position, providing additional cash runway into 2027.
Read all positive updates
Company Guidance
During the Prelude Therapeutics Investor Conference Call, the company provided guidance on its strategic focus and future clinical development activities. Prelude is set to advance two key development candidates into clinical trials by 2026: a JAK2V617F selective inhibitor for myeloproliferative neoplasms (MPN) and a KAT6A selective degrader for ER-positive breast cancer. The JAK2V617F inhibitor targets a mutation present in over 95% of polycythemia vera patients and 50-60% of patients with myelofibrosis and essential thrombocythemia, representing a market of over 200,000 MPN patients in the U.S. alone. The KAT6A program aims to address resistance in ER-positive breast cancer, with preclinical data suggesting a differentiated safety and efficacy profile over existing treatments. Prelude announced a significant $910 million deal with Incyte, including an upfront payment of $60 million, providing a financial runway into 2027, and plans to file an Investigational New Drug (IND) application for the JAK2 program in early 2026.Prelude Therapeutics Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
60
Neutral
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.42M | 12.14M | 7.00M | 0.00 | 0.00 | 0.00 |
| Gross Profit | 22.03M | 10.43M | 7.00M | 0.00 | 0.00 | 0.00 |
| EBITDA | -58.90M | -97.79M | -125.40M | -120.66M | -114.11M | -110.78M |
| Net Income | -60.49M | -99.50M | -127.17M | -121.83M | -115.44M | -111.69M |
Balance Sheet | ||||||
| Total Assets | 189.36M | 141.31M | 175.51M | 277.67M | 220.50M | 305.10M |
| Cash, Cash Equivalents and Short-Term Investments | 151.76M | 103.21M | 133.61M | 232.94M | 201.73M | 291.23M |
| Total Debt | 17.65M | 17.79M | 18.02M | 16.89M | 1.83M | 1.74M |
| Total Liabilities | 55.63M | 72.68M | 44.06M | 40.58M | 25.06M | 19.20M |
| Stockholders Equity | 133.73M | 68.64M | 131.46M | 237.09M | 195.44M | 285.90M |
Cash Flow | ||||||
| Free Cash Flow | -33.26M | -56.37M | -103.65M | -110.58M | -86.75M | -85.85M |
| Operating Cash Flow | -33.26M | -56.30M | -102.89M | -107.06M | -83.73M | -83.53M |
| Investing Cash Flow | -77.25M | 53.46M | 90.19M | -34.65M | 81.69M | -263.80M |
| Financing Cash Flow | 110.44M | 24.82M | -120.00K | 136.40M | 815.00K | 164.90M |
Prelude Therapeutics Technical Analysis
Negative
6.34
Price Trends
4.64
Negative
4.56
Negative
3.97
Negative
Market Momentum
-0.27
Negative
41.69
Neutral
57.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRLD, the sentiment is Negative. The current price of 6.34 is above the 20-day moving average (MA) of 3.67, above the 50-day MA of 4.64, and above the 200-day MA of 3.97, indicating a bearish trend. The MACD of -0.27 indicates Negative momentum. The RSI at 41.69 is Neutral, neither overbought nor oversold. The STOCH value of 57.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRLD.
Prelude Therapeutics Risk Analysis
Prelude Therapeutics disclosed 77 risk factors in its most recent earnings report. Prelude Therapeutics reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Prelude Therapeutics Peers Comparison
UnderperformOutperform
Sector (51)
PRLD
Prelude Therapeutics
3.63
1.92
112.28%
PMVP
PMV Pharmaceuticals
1.27
-0.31
-19.62%
GANX
Gain Therapeutics
1.26
-0.69
-35.38%
IMMX
Immix Biopharma
8.15
4.76
140.41%
Prelude Therapeutics Corporate Events
Business Operations and StrategyProduct-Related AnnouncementsRegulatory Filings and Compliance
Prelude Therapeutics IND Cleared for Novel Breast Cancer Drug
Positive
Sep 10, 2026
On September 10, 2026, Prelude Therapeutics announced that the U.S. Food and Drug Administration cleared its Investigational New Drug application for PRT13722, an oral, first-in-class KAT6A selective degrader for HR+/HER2- breast cancer. The compa...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.