Lexeo Therapeutics, Inc. (LXEO) AI Stock Analysis

• Market Cap: $146.81M
• Dividend Yield: N/A
• Average Volume (3M): 672.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.67
• Revenue Growth: N/A
• EPS Growth: -24.18%
• Country: US
• Employees: 72
• Sector: Healthcare
• Sector Strength: 66
• Industry: Biotechnology
• EPS (TTM): -3.09
• Shares Outstanding: 33,197,000
• 10 Day Avg. Volume: 1,022,403
• 30 Day Avg. Volume: 672,767
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -1.30
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $19.67
• Price Target Upside: 343.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Lexeo Therapeutics faces significant financial and operational risks typical for a biotech in development. The lack of revenue and profitability, coupled with negative cash flow, are critical concerns. While technical indicators show potential for a short-term correction, the stock's valuation challenges and reliance on external funding weigh heavily on its overall attractiveness.

Positive Factors

Rare Disease Opportunities

The softness of the stock creates an attractive buying opportunity as two rare disease opportunities are materializing.

Regulatory Pathway

The alignment with FDA on the registrational targets of LVMI reductions and FXN expression seems achievable, indicating a positive regulatory pathway.

Negative Factors

Cognitive Benefit Assessment

The study did not show signs that the magnitude of effects can drive cognitive benefit in treated patients, and a larger study would be required to evaluate cognitive benefits.

Financial Performance

Third-quarter financials did not meet consensus estimates, reporting a higher loss than expected.

Lexeo Therapeutics, Inc. Business Overview & Revenue Model

Company Description

Lexeo Therapeutics, Inc. operates as a clinical-stage genetic medicine company that focuses on hereditary and acquired diseases. The company develops LX2006, which is an AAVrh10-based gene therapy candidate for the treatment of Friedreich's ataxia (FA) cardiomyopathy; LX2020, an AAVrh10-based gene therapy candidate for the treatment of arrhythmogenic cardiomyopathy; LX2021, a gene therapy candidate for the treatment of DSP cardiomyopathy associated with it; and LX2022, a gene therapy candidate for the treatment of HCM caused by TNNI3 mutations. It also develops LX1001, an AAVrh10-based gene therapy candidate for the treatment of APOE4 homozygous; LX1020, a gene therapy candidate for the treatment of APOE4 homozygous; LX1021 for the treatment of APOE4 homozygotes; and LX1004 for the treatment of CLN2 Batten disease. The company was incorporated in 2017 and is based in New York, New York.

How the Company Makes Money

Lexeo Therapeutics, Inc. generates revenue primarily through the development and commercialization of its gene therapy products. The company may earn income from licensing agreements, research and development collaborations, and partnerships with pharmaceutical companies. Additionally, Lexeo may receive funding through grants, government contracts, or milestone payments related to the clinical progression and commercialization of its therapies. Strategic alliances and partnerships with larger pharmaceutical companies could also contribute to Lexeo's revenue stream, providing access to broader distribution networks and additional resources for product development.

Lexeo Therapeutics, Inc. Financial Statement Overview

Summary

Lexeo Therapeutics faces significant financial challenges with no revenue generation and persistent losses. While the balance sheet shows a strong equity position, the lack of revenue and negative cash flows highlight reliance on external funding, posing sustainability concerns.

Income Statement

Lexeo Therapeutics has faced significant financial challenges with consistent losses and zero revenue in the TTM. The company has not generated any revenue in recent periods, which is critical for sustainability. The net profit margin is negative, reflecting ongoing operational losses. Growth metrics are unfavorable, with revenue contraction over multiple periods.

Balance Sheet

The balance sheet reveals a high level of equity relative to total liabilities, indicating a strong equity position in the TTM. However, the company has no revenue to leverage its assets effectively. The debt-to-equity ratio is manageable, but the absence of revenue raises concerns about long-term financial stability.

Cash Flow

Despite raising significant financing cash flows, Lexeo's cash flow from operations remains deeply negative, indicating reliance on external funding. The negative free cash flow and operating cash flow highlight cash burn challenges, which are unsustainable without revenue generation.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	654.00K	1.66M	518.48K
	Gross Profit
-1.46M	-1.84M	-491.00K	1.64M	518.48K
	EBIT
-93.36M	-68.51M	-60.51M	-50.64M	-4.59M
	EBITDA
-87.65M	-66.67M	-58.04M	-50.62M	-4.58M
	Net Income Common Stockholders
-86.60M	-66.39M	-59.28M	-50.62M	-5.15M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
77.33M	121.47M	77.33M	135.86M	29.37M
	Total Assets
97.08M	139.81M	97.08M	136.86M	29.41M
	Total Debt
13.48M	11.64M	13.48M	0.00	3.01M
	Net Debt
-63.85M	-109.83M	-63.85M	-135.86M	-26.36M
	Total Liabilities
210.03M	26.27M	210.03M	192.46M	34.95M
	Stockholders Equity
-112.95M	113.53M	-112.95M	-55.60M	-5.54M
Cash Flow		Free Cash Flow
-67.36M	-59.66M	-55.46M	-44.37M	-3.13M
	Operating Cash Flow
-66.81M	-59.50M	-54.56M	-44.18M	-3.13M
	Investing Cash Flow
-567.00K	-165.00K	-901.00K	-188.00K	0.00
	Financing Cash Flow
188.94M	103.79M	189.00K	150.86M	32.38M

Lexeo Therapeutics, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LXEO, the sentiment is Neutral. The current price of 4.44 is above the 20-day moving average (MA) of 3.01, above the 50-day MA of 4.12, and below the 200-day MA of 8.86, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 56.38 is Neutral, neither overbought nor oversold. The STOCH value of 85.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LXEO.

Lexeo Therapeutics, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RARE	54 Neutral	$3.64B	―	-214.50%	―	29.01%	23.93%
Sector *	49 Neutral	$6.88B	0.82	-52.97%	2.48%	20.92%	1.17%
CRSP	46 Neutral	$3.36B	―	-19.20%	―	-89.95%	-123.71%
LXEO	44 Neutral	$146.81M	―	-85.37%	―	―	-24.18%
BLUE	42 Neutral	$37.50M	―	-270.20%	―	144.50%	-141.91%
EDIT	39 Underperform	$107.87M	―	-98.10%	―	-58.64%	-40.05%
NTLA	39 Underperform	$903.71M	―	-54.00%	―	59.55%	3.09%

Lexeo Therapeutics, Inc. Corporate Events

Lexeo Therapeutics Appoints Dr. Kyle Rasbach as CFO

Lexeo Therapeutics has appointed Dr. Kyle Rasbach as the new Chief Financial Officer, effective immediately. Dr. Rasbach’s extensive experience in life sciences and financial management is expected to support Lexeo’s growth as the company advances its gene therapy programs and prepares for pivotal studies.

Lexeo Therapeutics Strengthens Leadership with New Board Appointment

Lexeo Therapeutics has announced the appointment of Tolga Tanguler, a seasoned executive with over 25 years in the biopharmaceutical sector, to its Board of Directors, showcasing the company’s commitment to enhancing its leadership in genetic medicine. Tanguler’s extensive experience, including roles at Alnylam Pharmaceuticals and Pfizer, positions Lexeo for strategic growth as it advances its innovative cardiac and Alzheimer’s disease treatments. This leadership boost comes as Lexeo reports encouraging progress across its clinical programs and a solid cash position to support operations into 2027.