Prelude Therapeutics’ PRT3789 Shows Promising Selectivity in SMARCA2 Degradation, Justifying Buy Rating

Robert Burns, an analyst from H.C. Wainwright, reiterated the Buy rating on Prelude Therapeutics (PRLD – Research Report). The associated price target remains the same with $5.00.

Robert Burns has given his Buy rating due to a combination of factors surrounding Prelude Therapeutics’ advancements in the SMARCA2-targeted degrader space. At a recent AACR meeting, Prelude presented promising preclinical data for their SMARCA2 degrader, PRT3789, which demonstrated significant selectivity in degrading SMARCA2 over SMARCA4. This selectivity is particularly notable in SMARCA4-deficient cells, where PRT3789 shows over 4,500-fold greater antiproliferative selectivity compared to SMARCA4 wild-type cells.
Additionally, PRT3789 forms a more stable ternary complex with SMARCA2 and VHL than with SMARCA4 and VHL, and the resynthesis rate of SMARCA2 is slower than that of SMARCA4. These factors contribute to the effective selective degradation of SMARCA2 by PRT3789. Despite competition from other firms developing similar degraders, Robert Burns believes Prelude’s positioning and compound efficacy make it a leader in the SMARCA2-targeted degrader space, justifying the Buy rating and a 12-month price target of $5.

In another report released on April 29, Citizens JMP also reiterated a Buy rating on the stock with a $4.00 price target.

Based on the recent corporate insider activity of 15 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of PRLD in relation to earlier this year.