On Friday, BMO Capital Markets adjusted its outlook on Intellia Therapeutics shares (NASDAQ:NTLA), a biotechnology firm specializing in gene editing therapies. The firm increased its price target on the stock to $70.00, up from the previous $62.00, while maintaining an Outperform rating.
The adjustment comes amid anticipation of significant developments in Intellia's pipeline throughout 2024. BMO Capital highlighted three key upcoming catalysts for the company: the Phase I/Phase II data for NTLA-2002 expected around mid-2024, clinical data for all 72 patients treated with NTLA-2001 in the second half of 2024, and redosing data for three patients also expected in the latter half of the year.
Intellia's NTLA-2001, which targets ATTR-PN, a form of hereditary transthyretin amyloidosis that affects peripheral nerves, is particularly noted for its potential. The analyst expressed optimism about the treatment's prospects, citing a shorter development timeline with a projected approval around 2027.
The absence of alternative treatments for ATTR-PN, especially compared to ATTR-CM, which affects the heart and for which Tafamidis is approved, was also mentioned as a factor enhancing the therapy's attractiveness.
The firm's confidence in Intellia is further underscored by the inclusion of the ATTR-PN indication in their financial model, which contributed to the revised price target of $70. This target reflects BMO Capital's positive outlook on the company's gene editing approach and its potential impact on treatment for ATTR-PN.
InvestingPro Insights
As Intellia Therapeutics (NASDAQ:NTLA) navigates an important phase with anticipated pipeline developments, InvestingPro data and tips provide a deeper financial context. With a market capitalization of $2.4 billion, the company is making strides in gene editing therapies.
Despite a notable quarterly revenue growth of 129.53% in Q1 2024, Intellia's financial health raises concerns, underscored by a negative gross profit margin of -755.07% during the same period. This indicates that the company's cost of goods sold significantly exceeded its revenue, which is consistent with the InvestingPro Tip that Intellia suffers from weak gross profit margins.
InvestingPro Tips further reveal that analysts do not expect Intellia to be profitable this year, aligning with a negative P/E ratio of -4.99. Moreover, the company's cash burn rate is a point of attention, as it is quickly burning through cash, which is critical for sustaining its research and development efforts.
While Intellia does not pay dividends, reflecting a reinvestment strategy into its operations, investors should be mindful of its high revenue valuation multiple, which may signal a premium price compared to its earnings.
For readers looking to delve deeper into Intellia's financial metrics and strategic outlook, there are additional InvestingPro Tips available at: https://www.investing.com/pro/NTLA. To access these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With the current data at hand, investors are equipped to gauge the potential risks and rewards associated with Intellia's stock as the company progresses through a pivotal year.
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