Editas Medicine: Hold Rating Amid Legal Uncertainty and Financial Concerns

In a report released today, Yanan Zhu from Wells Fargo maintained a Hold rating on Editas Medicine (EDIT – Research Report), with a price target of $3.00.

Yanan Zhu has given his Hold rating due to a combination of factors impacting Editas Medicine. The company’s in vivo programs, including HSC and liver editing, are progressing as planned, which is a positive sign for future developments. However, the recent appellate court decision regarding the Cas9 patent interference case introduces a level of uncertainty, as the Patent Trial and Appeal Board (PTAB) has been instructed to reassess the case. This legal uncertainty could potentially impact Editas’s intellectual property strategy, although the company remains hopeful for a favorable outcome.
Additionally, Editas reported a larger-than-expected net loss per share for the first quarter of 2025, which may raise concerns about its financial performance. Despite this, the company’s cash reserves are expected to support operations into the second quarter of 2027, aligning with previous guidance. These mixed signals, including the ongoing patent case and financial results, contribute to the Hold rating, as they suggest a cautious approach while awaiting further developments.

In another report released today, Barclays also maintained a Hold rating on the stock with a $3.00 price target.