Guggenheim upgrades Editas Medicine stock rating on gene editing therapy

Guggenheim upgraded Editas Medicine's stock rating to Buy and set a price target of $5.00 per share on Monday, following a 7.75% increase in the stock price to $2.92 over the past week. This came with a notable 42% gain in value over the year-to-date period. The firm's updated model focuses on EDIT-401, a gene editing therapy aimed at treating severe hypercholesterolemia.

Preclinical trials demonstrated the treatment's effectiveness in reducing LDL-C levels by over 90% and ApoB levels by more than 70% at a therapeutic dosage. EDIT-401 works by upregulating LDLR expression through the generation of a large deletion or inversion in the gene's 3' untranslated region using dual gRNAs. While the safety and off-target effects of this dual double-strand break approach remain uncertain, Guggenheim identified a potential niche market within ASCVD patients requiring a significant reduction in LDL-C levels.

Six analysts have revised their earnings forecasts upwards for the upcoming period, although InvestPro suggests the stock is currently trading near its fair value. Editas Medicine plans to commence a Phase 1/2a clinical trial for EDIT-401 in the fourth quarter of 2026.