On Wednesday, Precision BioSciences Inc . (NASDAQ:DTIL) saw a significant increase in its stock price target from $2.50 to $30.00, while maintaining a Buy rating. Jones Trading stands by their optimistic outlook on the company's entry into the competitive in vivo gene editing market.
The company's move into the gene editing sector is expected to align its market valuation more closely with its peers, which are currently valued higher than those in the cell therapy space.
The analyst anticipates that investors will begin to view DTIL as a comparable company in the gene editing field, which could be advantageous as positive regulatory or data outcomes emerge from its collaborations with entities such as iEcure, Prevail, a part of Eli Lilly and Company (NYSE:NYSE:LLY), and Novartis (SIX:NOVN).
The adjustment in the price target accounts for the 30:1 reverse stock split that Precision BioSciences completed in February 2024. This corporate action has been factored into the new valuation model, although the company's gene editing assets are not yet included, as Investigational New Drug (IND) submissions are slated for 2024 and 2025.
Jones Trading has reiterated its Buy rating for DTIL, signaling confidence in the company's future performance and the potential for Precision BioSciences to benefit from its strategic positioning within the gene editing industry.
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