Prelude Therapeutics (PRLD) AI Stock Analysis

• Market Cap: $127.95M
• Dividend Yield: N/A
• Average Volume (3M): 256.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.56
• Revenue Growth: 250.00%
• EPS Growth: 15.15%
• Country: US
• Employees: 131
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.26
• Shares Outstanding: 43,765,010
• 10 Day Avg. Volume: 194,393
• 30 Day Avg. Volume: 256,051
• PEG Ratio: 0.04
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 13.75
• P/FCF Ratio: -0.93
• Enterprise Value/Market Cap: 0.05
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 0.62
• Enterprise Value/Ebitda: -0.05
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $2.50 ▲(2.04% Upside)

The score is held back most by weak financial performance (large ongoing losses, significant cash burn, and shrinking equity), partially offset by strong technical uptrend signals and a supportive earnings-call backdrop (Incyte deal extending runway and clear development milestones). Valuation remains constrained by negative earnings and no dividend.

Positive Factors

Strategic partnership / funding runway

The Incyte option and upfront capital provide substantial non-dilutive and milestone-linked funding, materially extending development runway into 2027. This structural backing reduces near-term financing risk, supports multi-program advancement, and strengthens negotiating leverage for future partnerships.

Advancing pipeline to clinic

Moving two differentiated programs toward IND and clinical entry by 2026 represents a durable value inflection path. Clinical translation reduces preclinical risk for lead assets, creates near-term milestone and partnering opportunities, and targets sizable patient populations with potential disease-modifying benefit.

Modest leverage

Low reported debt relative to equity reduces default and interest-rate risk during an extended R&D phase. Modest leverage preserves financial flexibility to fund trials and business development, allowing management to prioritize development decisions over debt servicing constraints.

Negative Factors

High cash burn

Sustained ~-$100M annual cash burn creates a structural dependency on external funding or partner payments. Persistent negative cash flow elevates dilution and refinancing risk, constrains discretionary R&D spend, and makes long-term program continuity contingent on successful milestone receipts or new capital.

Large ongoing losses

Substantial and recurring operating losses indicate the company cannot self-fund development from operations. Negative profitability drives negative returns on equity, limits reinvestment capacity, and forces reliance on licensing, milestones, or capital markets to sustain clinical programs over the medium term.

Shrinking equity base

A marked decline in shareholders' equity reduces the balance-sheet cushion against future losses and magnifies the dilutive impact of any new capital raises. This structural sensitivity can increase cost of capital, constrain borrowing capacity, and limit optionality in funding or partnering strategies over the coming years.

Prelude Therapeutics Business Overview & Revenue Model

Company Description

Prelude Therapeutics Incorporated, a clinical-stage precision oncology company, focuses on the discovery and development of novel precision cancer medicines to underserved patients. It is developing PRT543 that is in Phase 1 clinical trials in select solid tumors and myeloid malignancies; and PRT811, which is in Phase 1 clinical trials in solid tumors, including glioblastoma multiforme. The company is also developing PRT1419, a potent and selective inhibitor of the anti-apoptotic protein; PRT2527, a potent inhibitor of CDK9 that exhibits high kinome selectivity; PRT-SCA2, which is in preclinical stage for multiple genomically selected cancers; PRT3645, a brain penetrant molecule that potently and selectively targets CDK4/6; and PRT-K4 that is in preclinical stage for solid tumors. The company was incorporated in 2016 and is headquartered in Wilmington, Delaware.

How the Company Makes Money

Prelude Therapeutics primarily makes money through the development and commercialization of its proprietary drug candidates. The company's revenue model includes out-licensing its drug candidates to larger pharmaceutical companies, which may involve upfront payments, milestone payments, and royalties on sales if the drugs are successfully developed and commercialized. Prelude may also engage in collaborative research and development partnerships with other biotech or pharmaceutical companies, which can provide additional funding and resources. Additionally, the company might receive grants or funding from government or non-profit organizations to support its research efforts. As a clinical-stage company, Prelude's revenue may be limited until its drug candidates receive regulatory approval and reach the market.

Prelude Therapeutics Financial Statement Overview

Summary

Prelude Therapeutics is facing severe financial challenges with no revenue generation and increasing losses. The balance sheet remains moderately leveraged, but declining equity and increasing liabilities are concerning. Persistent negative cash flow from operations exacerbates the financial strain, underscoring the need for strategic adjustments to enhance financial stability.

Income Statement

Prelude Therapeutics has consistently reported zero revenue over the past years, indicating no sales generation. The company is incurring substantial EBIT and net losses, which are increasing annually, reflecting mounting operational challenges. The lack of any revenue growth and negative profit margins highlight significant financial strain.

Balance Sheet

The balance sheet shows a relatively stable equity position, though declining over the years. The debt-to-equity ratio remains low, which indicates limited leverage use. However, the continuous decline in stockholders' equity coupled with increasing liabilities suggests growing financial pressure.

Cash Flow

Cash flow from operations remains negative and has worsened, which indicates ongoing cash burn. Although free cash flow shows a negative trajectory, the company has managed to access financing, which temporarily boosts liquidity. The lack of revenue significantly hampers cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.50M	7.00M	0.00	0.00	0.00	0.00
Gross Profit	10.07M	7.00M	0.00	0.00	0.00	-542.00K
EBITDA	-118.57M	-137.94M	-131.11M	-122.22M	-112.82M	-58.22M
Net Income	-111.77M	-127.17M	-121.83M	-115.44M	-111.69M	-56.93M
Balance Sheet
Total Assets	94.75M	175.51M	277.67M	220.50M	305.10M	223.59M
Cash, Cash Equivalents and Short-Term Investments	54.96M	133.61M	232.94M	201.73M	291.23M	218.31M
Total Debt	17.85M	18.02M	16.89M	1.83M	1.74M	0.00
Total Liabilities	36.22M	44.06M	40.58M	25.06M	19.20M	11.41M
Stockholders Equity	58.53M	131.46M	237.09M	195.44M	285.90M	212.18M
Cash Flow
Free Cash Flow	-100.28M	-103.65M	-110.58M	-86.75M	-85.85M	-46.80M
Operating Cash Flow	-100.17M	-102.89M	-107.06M	-83.73M	-83.53M	-46.18M
Investing Cash Flow	135.92M	90.19M	-34.65M	81.69M	-263.80M	-621.00K
Financing Cash Flow	-162.00K	-120.00K	136.40M	815.00K	164.90M	246.23M

Prelude Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRLD, the sentiment is Positive. The current price of 2.45 is above the 20-day moving average (MA) of 2.42, above the 50-day MA of 1.94, and above the 200-day MA of 1.25, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 49.83 is Neutral, neither overbought nor oversold. The STOCH value of 17.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRLD.

Prelude Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPTX	58 Neutral	$112.08M	-1.53	-49.78%	―	-82.16%	14.58%
PRLD	56 Neutral	$127.95M	-1.40	-103.99%	―	250.00%	15.15%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PMVP	46 Neutral	$60.66M	-0.72	-51.87%	―	―	-58.47%
GANX	46 Neutral	$84.62M	-3.44	-261.72%	―	―	42.29%
PSTV	43 Neutral	$40.34M	-0.15	―	―	-8.16%	22.44%

Prelude Therapeutics Corporate Events

Prelude Therapeutics unveils strategic investor presentation on pipelines

On January 9, 2026, Prelude Therapeutics began using a new corporate investor presentation outlining its strategy to advance two highly differentiated programs: JAK2V617F mutant-selective JH2 inhibitors for myeloproliferative neoplasms and first-in-class, highly selective oral KAT6A degraders for ER-positive breast cancer and other tumors. The materials highlight recently disclosed preclinical data showing potent, mutant-selective activity of its JAK2V617F inhibitors, positioning them as potential disease-modifying therapies in a large and growing market now dominated by first-generation agents such as ruxolitinib, and describe a planned Phase 1 program as well as an exclusive option agreement with Incyte announced in November 2025 that provides significant capital to support the JAK2V617F and KAT6A pipelines, alongside ongoing degrader payload discovery and partnering efforts.

The most recent analyst rating on (PRLD) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Prelude Therapeutics stock, see the PRLD Stock Forecast page.

Prelude Therapeutics Reports Q3 2025 Financial Results

Prelude Therapeutics reported its third-quarter 2025 financial results and provided a corporate update, highlighting advancements in its pipeline programs. The company is progressing with its JAK2V617F inhibitor and KAT6A degrader programs, with IND filings expected in 2026. Financially, Prelude reduced its net loss to $19.7 million compared to the previous year, with a cash runway projected into 2027, supported by recent license payments.

The most recent analyst rating on (PRLD) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Prelude Therapeutics stock, see the PRLD Stock Forecast page.

Prelude Therapeutics Signs Option Agreement with Incyte

On November 3, 2025, Prelude Therapeutics entered into an Exclusive Option Agreement with Incyte Corporation to potentially acquire Prelude’s JAK2V617F JH2 inhibitor program, aimed at treating myeloproliferative neoplasms (MPNs). The agreement provides Prelude with $60 million in capital and the possibility of up to $910 million in total payments if Incyte exercises its option. Additionally, Prelude announced the resignation of Jane Huang, M.D., as President and Chief Medical Officer, effective November 3, 2025, with Dr. Victor Sandor stepping in to provide strategic oversight.

The most recent analyst rating on (PRLD) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Prelude Therapeutics stock, see the PRLD Stock Forecast page.

Prelude Therapeutics Appoints Katina Dorton to Board

On October 17, 2025, Prelude Therapeutics announced the appointment of Katina Dorton to its Board of Directors, following the resignation of Mardi Dier. Ms. Dorton, who brings over 30 years of experience in finance and healthcare, will serve as Chair of the Audit Committee. Her extensive background in strategic and financial advisory roles is expected to contribute significantly to Prelude’s goals in advancing its precision oncology drug candidates.

The most recent analyst rating on (PRLD) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Prelude Therapeutics stock, see the PRLD Stock Forecast page.