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Wall Street's Expectations for Biotech Stocks Surge

Biotech stocks CRISPR and Intellia are expected to rise. Both companies, despite past struggles, have potential catalysts for growth, but uncertainty remains around their revenue generation in the coming year.

Date: 
AI Rating:   5

Potential for Growth
Wall Street analysts have highlighted the significant upside potential for CRISPR Therapeutics (CRSP) and Intellia Therapeutics (NTLA) over the next year. CRISPR has a price target of $83.60, indicating a projected 66% increase, while Intellia's price target of $50.80 suggests a staggering 415% upside.

CRISPR Therapeutics
CRISPR Therapeutics has made notable progress by achieving regulatory approval for its therapy, Casgevy, which could generate substantial revenue in the future. However, the company remains unprofitable, and its sales are unlikely to increase significantly within the next twelve months due to the lengthy administration process of gene-editing treatments. Currently, there is uncertainty regarding whether CRISPR Therapeutics can meet Wall Street's expectations for revenue generation and stock price growth. Although there are strong potential clinical advancements due to its promising pipeline and substantial cash reserves of $1.9 billion, the focus on DNA therapies introduces significant risk. Thus far, no specifics on earnings per share (EPS), revenue growth, or profit margins have been provided.

Intellia Therapeutics
Intellia Therapeutics, lacking any products on the market, has garnered interest due to its late-stage candidates with significant market potential. Wall Street anticipates that successful trials for drugs like NTLA-2002 and the new drug, nex-z, could lead to remarkable stock performance. Nonetheless, Intellia must navigate the risk of its candidates failing to pass crucial phases in clinical trials. With an impressive cash reserve of $862 million, the firm appears to have the necessary liquidity to maintain operations for several years. Like CRISPR, there is no current data on EPS, revenue growth, or profit margins, leaving investors to consider their risk tolerance before investing.

Stocks:  CRSP NTLA