Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 6 Feb, 25 | CRSP | Buy | USD 42.22 | USD 45.0 | USD 48.0 | 8 days | 13.7% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
CRISPR Therapeutics AG, a gene editing company, focuses on developing gene-based medicines for serious human diseases using its Clustered Regularly Interspaced Short Palindromic Repeats (CRISPR)/CRISPR-associated protein 9 (Cas9) platform. Its CRISPR/Cas9 is a gene editing technology that allows for precise directed changes to genomic DNA. The company has a portfolio of therapeutic programs across a range of disease areas, including hemoglobinopathies, immune-oncology and autoimmune, in vivo, and type 1 diabetes. The company's lead product candidate is CASGEVY, an ex vivo CRISPR/Cas9 gene-edited cell therapy for treating patients suffering from transfusion-dependent beta-thalassemia, severe sickle cell disease, and hemoglobinopathies in which a patient's hematopoietic stem and progenitor cells are edited to produce high levels of fetal hemoglobin in red blood cells. It also develops CAR T cell therapies, including CTX112 targeting CD19 and CTX131 targeting CD70 for oncology and autoimmunune indications; CTX310 and CTX320, in vivo gene editing to address the cardiovascular disease by disrupting the validated targets angiopoietin-like protein 3 and lipoprotein; and VCTX211, an allogeneic, gene-edited, hypoimmune stem cell-derived product candidate for the treatment of T1D. It has strategic partnerships with Vertex Pharmaceuticals Incorporated, ViaCyte, Inc., Nkarta, Inc., and Capsida Biotherapeutics. CRISPR Therapeutics AG was incorporated in 2013 and is headquartered in Zug, Switzerland.
Improved Quarterly Loss: The company reduced its net loss for Q3 2024 to $85.9 million, which is an improvement from $112.2 million in Q3 2023. This indicates more efficient management of its R&D and operating expenses, signaling positive financial discipline and the potential for improved future profitability.
Strong Cash Reserves: CRISPR Therapeutics reported $1.9 billion in cash, cash equivalents, and marketable securities as of September 30, 2024. This financial position provides the company with a solid runway to continue funding its research and clinical trials without immediate concerns about raising additional capital
R&D Expense Decrease: Although CRISPR has reduced its R&D expenses to $82.2 million in Q3 2024 (from $90.7 million in Q3 2023), this could be a sign that the company is scaling back certain initiatives. A decrease in spending on R&D might impact the acceleration of key programs, possibly delaying product development timelines.
Ongoing Losses: Despite the improvement, the company is still posting significant losses, with a net loss of $85.9 million in Q3 2024. This reflects the high costs associated with developing gene-editing therapies, which may take time to turn into profitable commercial products
While the company's pipeline shows promise, gene-editing therapies face substantial challenges in terms of long-term safety, efficacy, and cost-effectiveness. Regulatory hurdles in various regions and competition from other biotech companies working on similar technologies (like CAR T and gene therapies) could impact CRISPR’s market positioning.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 42.22 | 38.0 | 45.0 | 48.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on CRISPR Therapeutics (NASDAQ: CRSP) at the closing price of USD 42.22, as on February 05, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Healthcare Industry: Biotechnology
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| CRSP Crispr Therapeutics AG |
-0.05 0.15% | 33.98 | - | 23.36 | 17.06 | 1.78 | 8.76 | 14.16 |
| NVO Novo Nordisk A/S |
-0.8143 1.17% | 68.63 | 41.58 | 31.15 | 2.13 | 32.99 | 2.11 | 4.70 |
| NONOF Novo Nordisk A/S |
0.0025 0.0036% | 68.96 | 41.06 | 31.25 | 2.08 | 33.11 | 2.11 | 4.70 |
| VRTX Vertex Pharmaceuticals Inc |
0.03 0.0062% | 484.85 | 29.67 | 24.33 | 10.38 | 5.83 | 9.33 | 20.00 |
| REGN Regeneron Pharmaceuticals Inc |
-7.26 1.14% | 626.97 | 29.07 | 20.12 | 7.57 | 3.82 | 6.95 | 19.42 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is February 05, 2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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