Will CRISPR Stock Double in the Next Year?

By Chris Lange Published Jun 24, 10:23AM EDT

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Will CRISPR Stock Double in the Next Year? — © Bill Oxford / Getty Images

On the long way down, in what appears to be a clear-cut recession, investors are looking at picking up names on the cheap for when the turnaround kicks in. While we do not necessarily know when that will be, it does not hurt to add high-quality names to the portfolio when prices are depressed. One big Wall Street name thinks it has found a high-quality stock and big winner in this gene-editing companying, with implied upside of more than 100%.

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Oppenheimer’s Jay Olson was the lead analyst on the call on CRISPR Therapeutics AG (NASDAQ: CRSP | CRSP Price Prediction). Companies that focus on gene-based medicines have grown in popularity in recent years, and CRISPR was riding high on this wave during the pandemic but has since fallen back to pre-pandemic levels, offering a potential buying opportunity.

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The chart for the stock shows that it bottomed out in mid-May and has since made a solid recovery. However, shares have been bouncing in the range of $55 to $75 since late May. At the moment, there appears to be solid support at $57 (the 50-day moving average), but it remains to be seen what will happen when CRISPR stock tests the $75 resistance (200-day moving average) in the coming trading sessions.

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In terms of the actual call, Oppenheimer reiterated an Outperform rating but lowered the $150 price target to $122, implying upside of 103% from the recent closing price of $59.94.

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According to Olson, CRISPR technology represents the most promising tool to achieve an ultimate functional cure for many diseases, and decision-making is more critical now when it comes to dilemmas such as prioritization of superior next-generation programs and how to optimize deployment of resources and capital. He believes that the answers may continuously evolve, depending on competitive dynamics and corresponding unmet needs. As the company is advancing over 10 in vivo programs, with a total of 30 programs, it remains to be seen how aggressively the company can continue to advance its pipeline.

CRISPR traded near $66 early Friday, in a 52-week range of $42.51 to $169.76. The consensus price target is $114.48. The stock is down about 14% year to date, but down more than 50% in the past 52 weeks.

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.