Buy Rating for Crispr Therapeutics AG: Pediatric Market Potential and Long-term Growth Opportunities

H.C. Wainwright analyst Mitchell Kapoor has reiterated their bullish stance on CRSP stock, giving a Buy rating yesterday.

Mitchell Kapoor has given his Buy rating due to a combination of factors that highlight the potential growth and validation of Crispr Therapeutics AG’s CASGEVY product. The recent pediatric data from the ASH dataset demonstrates 100% efficacy in children aged 5-11, which supports the ‘functional cure’ thesis and validates the technology in a demographic with significant commercial potential. This contrasts with the adult market, where the treatment process is more challenging, leading to slower uptake. The pediatric segment, however, offers a more straightforward path to intervention, potentially preventing irreversible chronic organ damage.
Furthermore, the logistical efficiencies in the pediatric market, such as the reduced number of mobilization cycles required, enhance the product’s long-term profile. The durability of the treatment in adults, now exceeding three years, further strengthens its appeal. Despite a single patient fatality related to a known conditioning risk, the safety profile of the platform remains superior to its competitors. Kapoor’s valuation analysis, using a discounted cash flow model, results in a 12-month price target of $80 per share, reflecting the long-term opportunities and potential for broader label expansion in the pediatric market.

Kapoor covers the Healthcare sector, focusing on stocks such as Halozyme, Neurogene, and Ionis Pharmaceuticals. According to TipRanks, Kapoor has an average return of 0.0% and a 41.29% success rate on recommended stocks.

In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $93.00 price target.