After a period of steady underperformance, investors should pick up shares of biotech Prime Medicine as regains the market's favor, according to Citi.
Analyst Samantha Semenkow upgraded the preclinical-stage company to buy from neutral and kept her price target of $10 per share, which implies 47.9% potential upside from the stock's latest close.
To be sure, Semenkow said she remains cautious on Prime's cash position and expects the Cambridge-based company to need to raise again in the next 12 to 18 months.
Ongoing [business development] efforts could provide a source of non-dilutive cash and potential upside to her target price, she added.
The company also had significantly more cash and cash equivalents on hand at the end of the previous quarter compared to the end of last year.
Persons:
Samantha Semenkow, Semenkow
Organizations:
Prime Medicine, Citi, and Drug Administration, Cambridge, Research
Locations:
hematology