Stifel cuts Prime Medicine to hold, cites quieter catalyst outlook

asbe Stifel has downgraded Prime Medicine ( NASDAQ: PRME ) to hold, citing a “relatively quieter” catalyst outlook for 2024 and concerns over finances. Stifel said that 2024 has been “effectively branded as an execution year” for the company, with a data readout not due until 2025. The investment bank said it believes the company’s prime editing technology may face greater scrutiny because it is more nascent than CRISPR/Cas9.

It added that investor response to the readout could be “muted” if the trial is comparatively small. Stifel noted the company also faces “an overarching investor concern regarding PRME’s financial strength and a possible dilution risk.” It added that it believes the shares may be more range bound, “with a potentially better entry point later on.” Stifel lowered its price target to $9 from $18.

More on Prime Medicine Prime Medicine GAAP EPS of $0.55 misses by $0.07 Gene editing stocks gain after Eli Lilly deal amid FDA AdCom Seeking Alpha’s Quant Rating on Prime Medicine Historical earnings data for Prime Medicine Financial information for Prime Medicine.