Cautious Outlook on Editas Medicine: Hold Rating Amidst Preclinical Progress and Financial Considerations

JonesTrading analyst Soumit Roy has maintained their neutral stance on EDIT stock, giving a Hold rating on May 14.

Soumit Roy has given his Hold rating due to a combination of factors related to Editas Medicine’s current developmental stage and future prospects. The company is making progress with its in vivo gene editing programs, aiming to nominate development candidates for both hematopoietic stem cell and liver programs by mid-2025. However, these programs are still in the preclinical phase, and the company does not expect to enter clinical trials until the second half of 2026.
Additionally, while Editas has shown promising results in preclinical models, such as achieving significant gene editing efficiency in liver-targeting applications, these advancements are yet to be translated into clinical success. The ongoing legal issues surrounding CRISPR/Cas9 technology appear to have minimal impact on Editas, as their CRISPR/Cas12a technology remains unaffected. Despite these developments, the company’s cash burn rate and the time required to reach clinical stages contribute to the Hold rating, reflecting a cautious outlook until more concrete clinical data becomes available.