Why Did BMO Capital Markets Raise Price Target For Gene Stock One Month After Initiating Coverage

• BMO Capital Markets has raised the price target on Beam Therapeutics Inc (NASDAQ: BEAM) to $61 from $41, with a Market Perform rating unchanged.

• The model changes include updated collaboration revenues for Verve Therapeutics Inc's (NASDAQ: VERV) VERVE-101 program and the incorporation of the Alpha-1 antitrypsin deficiency (AATD) program, modeled at ~$1 billion peak risk-adjusted sales in 2035E.

• Related: Verve Therapeutics Amends Gene Editing Pact With Beam Therapeutics.

• BMO says that the key points Beam's thesis continues to rely on:

• Beam's gene editing platform is differentiated preclinically, with best-in-class potential, but clinical derisking is yet to be established.

• Penetration of Beam's lead assets in the Sickle Cell Disease (SCD) market may be limited given that key competitors are ~3+ years ahead.

• Diversified pipeline/partnerships can offer long-term optionality.

• Related: BMO Capital Says Risk/Reward For This Gene Stock Assumes Clinical Success.

• The analyst agrees that Beam's AATD and BEAM-102 programs can ultimately be commercially competitive but believe that the underlying risk due to their early stage of development doesn't allow for a high valuation.

• Price Action: BEAM shares are up 5.15% at $60.59 during the market session on the last check Monday

Latest Ratings for BEAM

Date	Firm	Action	From	To
Jan 2022	SVB Leerink	Maintains		Outperform
Jan 2022	Guggenheim	Initiates Coverage On		Buy
Nov 2021	SVB Leerink	Maintains		Outperform

View More Analyst Ratings for BEAM

View the Latest Analyst Ratings

See more from Benzinga

• Verve Therapeutics Amends Gene Editing Pact With Beam Therapeutics

Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.