Oppenheimer bullish on Prime Medicine, initiates with an Outperform

As previously reported, Oppenheimer initiated coverage of Prime Medicine (PRME) with an Outperform rating and $11 price target The firm says Prime is a key name to own in the gene editing space. The company employs prime editing, the best-in-class gene editing approach, validated via early clinical data and a BMS partnership. Prime’s pipeline includes a potentially best-in-class AATD program, wherein even 10% market share yields multi-billion-dollar sales, and key opinion leaders believe gene editing could achieve about 50% market share, Oppenheimer adds. Based on peers’ valuation, the firm sees potential for about 100%-200% upside following major catalysts within 10-15 months. Further, Oppenheimer believes Prime’s high short interest is unrelated to fundamentals.