NTLA Stock Getting Ahead in Gene Editing Race

It has been a colossal year for gene-editing giant Intellia Therapeutics (NTLA). The biotech company has received significantly positive results from its recent clinical trials. Accordingly, as a biotech stock, Read More... The post NTLA Stock Getting Ahead in Gene Editing Race appeared first on TipRanks Financial Blog.

NTLA Stock Getting Ahead in Gene Editing Race

It has been a colossal year for gene-editing giant Intellia Therapeutics (). The biotech company has received significantly positive results from its recent clinical trials. Accordingly, as a biotech stock, investors may not be surprised to hear that Intellia is one of the best-performing stocks of its peer group.

Year-to-date, NTLA stock has surged more than 170%. Over the past year, shares of NTLA stock have surged more than 600%, with investors increasingly growing bullish on the gene editing space.

As a leader in gene editing technology, Intellia has shown impressive progress in commercializing its underlying product. This has gotten growth gurus, such as Cathie Wood, on board in a big way. And when Cathie's buying, you bet retail investors are getting excited.

So far, gene editing companies have used CRISPR-based therapies to edit the genetic code in stem cells. Now, Intellia has come up with a technology that holds up COVID-19 vaccines from BioNTech () and Moderna () to design a possible cure for rare inherited diseases.

Accordingly, NTLA stock has been one of the hottest performers of late. It's unsurprising to see growth investors gravitate toward these potential disruptive stocks in a big way. However, valuation concerns remain as these stocks continue to get more and more expensive.

Right now, I remain cautiously bullish on NTLA stock. (See Intellia Therapeutics stock charts on TipRanks)

Future Growth Driving this Stock

Like many high-growth stocks, Intellia has been losing money of late. Indeed, the market is pricing in increased revenue growth projections for this stock, with positive earnings likely a long way out. However, the long-term clip at which Intellia is able to grow remains the core focus of investors looking at gene editing stocks in general. Accordingly, over the long-term, investors are betting that cash flow growth will be impressive, and will more than make up for whatever near-term investment is required.

That said, Intellia's revenue this past year was actually lower than last year. Investors betting on Intellia's future growth potential are thus increasingly looking more at clinical trial data than at past results. Accordingly, this is a stock which appears to be completely detached from its past fundamentals, for good reason.

Let's dive into why investors are so laser-focused on recent clinical trial results.

Stirring Clinical Trials

On June 26, Intellia and its partner Regeneron Pharmaceuticals (), gave interim trial results for NTLA-2001. This is a possible new treatment for the ATTR-PN hereditary disease. Patients with this disease suffer from severe nerve and organ damage when transthyretin starts falling apart. 

With time, transthyretin fragments take the form of dangerous plaques. However, that's not the case for patients who receive the NTLA-2001 treatment. The impressive gene therapy by NTLA involves a pair of RNA messenger surrounded by lipid nanoparticles (LNP). Unlike Editas’ candidate, NTLA-2001 safely reaches the liver through the bloodstream. 

In the not-so-distant-past, safely sending RNA through the bloodstream seemed like a far-off dream. Last year, BioNTech and Moderna showed that LNP technology has finally advanced and is set to be the innovative breakthrough for which everyone was hoping.

As per the recent trial data, a single dose of NTLA-2001 lowered transthyretin concentrations by more than half. These results were the same for the first three patients receiving 0.1 mg/kg of their body weight.   

Again, in the next group, patients received a 0.3 mg dose. This dose lowered the transthyretin concentrations by a whopping 87%.  

Meanwhile, accidental removal of non-targeted genes is one of the major safety concerns for CRISPR-based companies. However, this has not been a problem for Intellia so far. There was not a single case of adverse events in the first six patients receiving NTLA-2001 treatment. 

Analysts Take on NTLA Stock

As per TipRanks' analysts rating consensus, Intellia is a Strong Buy. Out of 16 ratings, there are 13 Buy recommendations and 3 Hold recommendations.

The average Intellia Therapeutics price target is $174.94, implying 17.3% upside. Analyst price targets range between a low of $130 per share and a high of $252 per share.

Bottom Line

These interesting trial results have resulted in record share price appreciation for NTLA. Indeed, these results are welcome by long-term investors. Those seeking hyper-growth gene editing stocks with an impressive future are increasingly choosing NTLA stock. The data suggests this is the best play in the sector, and the market agrees.

Disclosure: At the time of publication, Chris MacDonald did not have a position in any of the securities mentioned in this article

Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates, and should be considered for informational purposes only. TipRanks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. TipRanks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by TipRanks or its affiliates. Past performance is not indicative of future results, prices or performance.

The post NTLA Stock Getting Ahead in Gene Editing Race appeared first on TipRanks Financial Blog.

Source : Tip Ranks More   

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GOEV Stock – EV Company of the Future?

Canoo Inc. (GOEV) is a Los-Angeles based mobility technology firm focused on designing, engineering, developing, and manufacturing EVs for both commercial and private purposes. The company uses skateboard architecture technology Read More... The post GOEV Stock – EV Company of the Future? appeared first on TipRanks Financial Blog.

GOEV Stock – EV Company  of the Future?

Canoo Inc. () is a Los-Angeles based mobility technology firm focused on designing, engineering, developing, and manufacturing EVs for both commercial and private purposes. The company uses skateboard architecture technology to manufacture B2B delivery vehicles and lifestyle vehicles along with multipurpose delivery vehicles in the United States. Canoo’s modular electric platform is built to deliver maximum interior space in vehicles. 

Additionally, the company includes a range of vehicle applications for both businesses and individuals. These factors have made Canoo an intriguing speculative bet in the EV space.

Currently, I'm somewhat bearish on GOEV stock. (See Canoo Inc. stock charts on TipRanks)

Volatile EV market

One of the reasons for this stance is the volatility of the EV market. Since the onset of the pandemic, EV stocks have surged and dropped to a degree that makes many investors uncomfortable. Indeed, like other EV stocks, Canoo's valuation has become a point of contention among bears, with bulls noting that the company's long-term growth prospects make this valuation worthwhile.

That said, one of the key contributing factors to Canoo's volatile nature is simply the fact that this is a de-SPAC (special purpose acquisition company) company. The SPAC space has been ultra volatile of late, due to the speculative nature of companies that choose reverse mergers to go public.

Accordingly, GOEV stock has fluctuated between a massive range of $5.75 per share and nearly $25 per share over the past year. Currently, GOEV stock is trading near the lower end of this range, as bearish sentiment on this company builds.

Can Canoo come roaring back? Or is the music starting to stop? Let's dive in.

Key Catalysts for GOEV Stock

Perhaps the most bullish argument that can be made for GOEV stock is that this company is a potential short squeeze candidate. Simply because of the company's short interest of late, retail investors may want to take a gamble on this stock squeezing.

Such a stance is not insane. Other companies with low share prices, high short interest and borrow fee rates, and low floats, have squeezed in incredible fashion. However, the potential for GOEV stock to pick up the momentum necessary to initiate such a squeeze appears to be the problem.

Earlier this year, GOEV stock rallied by a whopping 35%, courtesy of Reddit users bidding for short-term play. In fact, nearly 33% of the company's floating shares were sold short.  

However, since then, sentiment on platforms such as Reddit group WallStreetBets has calmed down. Investors seem more concerned with the fact that Canoo has recorded no revenue and an operating loss of nearly $97 million, per its first-quarter results posted in May. However, Canoo did get a temporary boost, as it ended the quarter with $641 million in cash and cash equivalents.

In its Q2 report, the company recorded a wider-than-expected loss in the quarter but managed to generate 9,500 non-binding pre-orders. Moreover, loss from operations is also down by 426.8% year-over-year, while total assets took a blow of over $700 million, nearly a 6% fall year-over-year. Additionally, the company's net loss grew by approximately 385% to over $110 million.

Canoo's EBITDA loss of around $76 million was also up from $17.7 million during the same quarter in 2020. Further, Canoo also reported negative operating cash flows amounting to $108.8 million, along with around $565 million in cash.  

These are not bullish numbers at all.

The Bigger Picture for GOEV

According to Tony Aquila, CEO of GOEV, the company is planning to introduce sustainable and affordable vehicle options to the global market. This strategy takes time to enact, and investors shouldn't focus on recent results as indicative of what the future will hold.

On the other hand, Canoo has recently made two notable moves. First, Canoo has secured a manufacturing contract with VDL Nedcar. Secondly, the company has selected Oklahoma as the partner for the manufacturing plant.

Indeed, on the production front, Canoo has sourced 87% of its components at the end of the second quarter, 13 points higher year-over-year. When bulk materials are excluded, the company has sourced 95% of its manufacturing materials. These are good signs pointing to production commencing as planned.

Canoo is set to launch its first product in 2022, which the company will follow up with multipurpose delivery vehicles, along with pickup trucks. Aquila added that the company is looking to secure the company’s future and plans to focus on the fundamentals. Further, he claims that companies and stock prices do not always factor in positive events or catalysts.

The company is in a pre-revenue state and aligned with analyst expectations of revenues, hitting the $75 million mark in 2022. This would signify a price-to-sales multiple of over 25, considering the current market cap of around $2.15 billion.

Indeed, most fundamentals-oriented investors would say that's high. However, for a company with the growth potential of Canoo, perhaps this is reasonable. Time will tell.

What are Analysts saying about GOEV Stock?

As per TipRanks' analyst rating consensus, Canoo is a Hold. Out of 4 analyst ratings, there are 2 Buy recommendations, 1 Hold recommendation, and 1 Sell recommendation.

The stock has an average Canoo price target of $11.50, implying upside of 27.21%. Analyst price targets range from a high of $19 per share to a low of $5 per share.

Bottom Line

There's an intriguing bull and bear case to make with GOEV stock right now. Indeed, the EV sector is seeing higher levels of competition of late, making this space a more intriguing one to watch. However, picking the winners out of this early-stage pool is rather difficult.

Canoo is an intriguing option with impressive upside, but also holds extremely high risk right now. Accordingly, investors should size their positions accordingly when considering such speculative plays.

Disclosure: At the time of publication, Chris MacDonald did not have a position in any of the securities mentioned in this article.

Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates, and should be considered for informational purposes only. TipRanks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. TipRanks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by TipRanks or its affiliates. Past performance is not indicative of future results, prices or performance.

The post GOEV Stock – EV Company of the Future? appeared first on TipRanks Financial Blog.

Source : Tip Ranks More   

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