On Tuesday, Metagenomi Inc (NASDAQ:MGX) received a new Buy rating from a major financial firm. Jefferies, a well-known investment banking company, initiated coverage on the biotech firm, setting a price target of $23.00 for its shares. The coverage comes as Metagenomi makes strides in the development of next-generation gene-editing tools.
The company, which is in the early preclinical stages with its leading in vivo gene knock-in program for hemophilia A, is anticipated to reach Investigational New Drug (IND) or Clinical Trial Application (CTA) status around 2026. The analyst noted that early proof-of-concept (PoC) data from non-human primate (NHP) studies has somewhat mitigated the risks associated with the program's development.
Metagenomi's research has revealed a collection of novel gene-editing tools that possess unique qualities suitable for treating a wide range of genetic diseases. This innovation underpins the positive outlook for the company, as it aims to demonstrate more platform proof-of-concept within this year.
The firm's financial position appears robust, with a pro forma cash runway estimated to extend into 2027, amounting to $351 million. This financial stability, coupled with what is seen as a discounted valuation of the company's stock, contributes to the attractiveness of Metagenomi's shares in the eyes of the analyst at Jefferies.
The initiation of this coverage and the establishment of a price target is a significant milestone for Metagenomi, reflecting a vote of confidence in the company's potential to advance its gene-editing technology and address genetic diseases effectively. With additional non-human primate data expected, the company is poised to further demonstrate the capabilities of its platform throughout the year.
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