Intellia Therapeutics Stock Has 119% Upside, According to 1 Wall Street Analyst

The day after Intellia Therapeutics (NTLA -0.84%) updated investors with its results for the fourth quarter on Feb. 23, Cannacord Genuity analyst Whitney Ijem issued a new price target for the stock, estimating that it’d climb by 119% to $73. But, per management’s anticipated milestones for 2024, the pre-revenue biotech’s most exciting catalysts will be when it reports preliminary data from a pair of its clinical trials later this year. Though it won’t have an opportunity to seek regulatory approval for any of its programs for at least a couple of years, assuming that the late-stage clinical trial data look good.

In other words, realizing revenue from sales of its medicines is still far off, and far from guaranteed. So can Ijem’s estimate become a reality?

With the right data, anything is possible

This year, Intellia has two gene editing programs worth watching: NTLA-2001, and NTLA-2002. Both programs aim to use its technology to potentially permanently correct detrimental copies of patients’ genes, thereby alleviating their symptoms on a (hopefully) permanent basis.

NTLA-2001 treats transthyretin (ATTR) amyloidosis, and management is signaling that it will be providing investors with more phase 1 data while also starting dosing of patients in a soon-to-begin phase 3 trial. On the other hand, NTLA-2002 treats hereditary angioedema (HAE), and the company plans to present its full phase 2 results while also initiating a phase 3 trial.

As Intellia’s future rests entirely on it commercializing one or more of its medicines before running out of cash, which as of Q4 totaled close to $1 billion, the quality of the data it presents could indeed have a massive impact on its share price. Based on the favorable data it has shared so far, particularly for the HAE program, the market’s expectations will be high and there’s the potential for it to jump big time with good results.

So, while the stock is probably still too risky for most investors, as pre-revenue biotech stocks tend to be, it’s fully possible that the analyst’s estimate could come true if Intellia can continue to deliver the goods.