Buy Rating Affirmed for Precision BioSciences on Advancing Gene Editing Pipeline and Strong Financials

Analyst Justin Zelin from BTIG reiterated a Buy rating on Precision BioSciences (DTIL – Research Report) and keeping the price target at $30.00.

Justin Zelin has given his Buy rating due to a combination of factors related to Precision BioSciences’s progress and potential in the field of gene editing. Zelin acknowledges the advancements Precision BioSciences has made towards clinical trials with both partnered and in-house programs. The company’s in-vivo editing programs are expected to produce clinical data in the next 12 to 18 months, indicating a clear trajectory towards validating their technology. The iECURE partnered program is set to dose its first patient soon, aiming to treat OTC deficiency, and Precision BioSciences’s wholly owned PBGENE-HBV program is expected to submit an IND and/or CTA in 2024, with initial data potentially available in the first half of 2025. These developments suggest a robust pipeline that is steadily moving forward.
Furthermore, Zelin’s optimism is bolstered by the financial aspect, with Precision BioSciences trading below cash value, which he views as a market oversight given their promising pipeline and the validated ARCUS gene editor’s potential. Additionally, the company’s pro forma cash runway is projected to extend into the second half of 2026, allowing them to reach phase 1 data for their HBV and PMM programs. Zelin sees this as a significant de-risking factor, which when combined with the expected clinical data and the strategic evaluation of their returned programs, presents a compelling case for a Buy rating.

In another report released on April 30, Guggenheim also initiated coverage with a Buy rating on the stock with a $19.00 price target.

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Precision BioSciences (DTIL) Company Description:

Precision BioSciences, Inc. is a biotechnology company, which engages in the development of genome editing technologies. It operates through the Therapeutics and Food segments. The Therapeutics segment focuses on the development of products in the field of immuno-oncology and of novel products outside immuno-oncology to treat human diseases. The Food segment applies ARCUS, the company’s propriety genome editing platform, to develop food and nutrition products through collaboration agreements with consumer-facing companies. The company was founded by Derek N. Jantz, Jeff Smith, and Matthew R. Kane in January 2006 and is headquartered in Durham, NC.