Beam Therapeutics: Undervalued Base-Editing Leader with De-Risked BEAM-302 Driving $46 Price Target and Overweight/Buy Rating

J.P. Morgan analyst Brian Cheng maintained a Buy rating on Beam Therapeutics today and set a price target of $46.00.

Brian Cheng has given his Buy rating due to a combination of factors that highlight Beam Therapeutics’ differentiated technology and attractive risk‑reward profile. He views Beam’s base-editing platform as capable of delivering first- or best-in-class therapies across multiple hematology and liver-related diseases, owing to its strong editing efficiency and precision. Within this platform, he considers the BEAM-302 program in alpha-1 antitrypsin deficiency (AATD) particularly compelling based on early proof-of-concept data that reached clinically meaningful AAT levels and suggests room for additional upside with higher and double-dose cohorts. He also notes that recent regulatory alignment on an accelerated approval pathway for BEAM-302 de-risks development and supports the potential for a more efficient path to market.

Cheng’s valuation work further supports the Buy rating, as his discounted cash flow sum-of-the-parts analysis yields a $46 price target, with the majority of value attributed to BEAM-302 and incremental contribution from the BEAM-101 sickle cell disease program. He sees the upcoming BEAM-302 data update as relatively low risk, with multiple scenarios that skew toward meaningful upside if biomarker improvements continue or increase at higher doses, particularly without new safety concerns. Additional value stems from Beam’s broader pipeline, net operating losses, cash position, and a de-risked regulatory strategy in sickle cell disease. While he recognizes standard biotech risks — including clinical, regulatory, commercial, manufacturing, financing, and intellectual property challenges — he concludes that the current share price does not fully reflect the company’s platform potential and key late-stage assets, justifying an Overweight/Buy recommendation.

Cheng covers the Healthcare sector, focusing on stocks such as PTC Therapeutics, Beam Therapeutics, and Revolution Medicines. According to TipRanks, Cheng has an average return of 1.3% and a 50.90% success rate on recommended stocks.

In another report released yesterday, Bernstein also maintained a Buy rating on the stock with a $41.00 price target.