CRISPR Therapeutics falls sharply after Barclays downgrade

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CRISPR Therapeutics ($NASDAQ:CRSP) traded sharply lower after Barclays downgraded the gene editing company on Tuesday following its Q2 2022 update, which fell short of Street forecasts for financials. The price target lowered to $88 from $99 per share stands ~25% higher than the current average price target on Wall Street. This news caused investors to worry about the company’s ability to meet its financial goals in the long term. While CRISPR Therapeutics has made great strides in developing its gene editing technology, it remains to be seen if this will translate into strong earnings and market success.

Market Reaction

CRISPR Therapeutics stock opened at $78.6 and closed at $75.1.

VI Analysis

Company’s fundamentals reflect its long term potential, below analysis on CRISPR THERAPEUTICS AG are made simple by VI app.

VI Star Chart shows that CRISPR THERAPEUTICS AG is classified as ‘cheetah’, a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. High growth companies are deemed more volatile as they attempt to grow faster.

CRISPR THERAPEUTICS AG has an intermediate health score of 6/10 with regard to its cashflows and debt, might be able to pay off debt and fund future operations.

CRISPR THERAPEUTICS AG is strong in asset, growth, medium in profitability and weak in dividend.

Summary

CRISPR Therapeutics AG’s stock price fell sharply after Barclays downgraded the company’s stock from “overweight” to “equal weight.” The downgrade was based on concerns that the company’s clinical-stage products are still many years away from commercialization and that the company faces significant competition from other companies developing CRISPR-based therapies.