Brokers downgrade gene editing firm Editas to ‘hold’, shares down 23% By Investing.com

Investing.com — Truist and Stifel downgraded Editas Medicine Inc (NASDAQ:) to “hold” from “buy”. While Truist removed its price target citing a lack of near-term catalysts, the latter broke to $3 from $11.

Shares of Editas, a gene-editing company, fell 23% to $1.45 on Friday.

Editas announced a strategic change, ending its development of reni-cel and reducing its workforce by 65%. The company plans to focus entirely on in vivo treatment development, with clinical proof of concept at least two years away.

When Editas presented pre-trial data supporting its in vivo approach to hematopoietic stem cells, Truist expressed concern about competitive pressures and uncertainty surrounding the program.

Truist said he will remain on the sidelines due to limited opportunities to create value over the next 12-18 months.

“Despite an evolving clinical profile that looks favorable, EDIT’s decision to halt development after an extensive search did not yield a commercial partner is disappointing, and for us, prompts us to revisit our investment theory in the stock,” wrote a Stifel analyst.