1 Top Wall Street Analyst Thinks CRISPR Therapeutics Could More Than Double. Should You Buy the Stock Hand Over Fist?

CRISPR Therapeutics (NASDAQ: CRSP) has performed well over the past year. The company's shares have climbed 56%, while the S&P 500 has gained a comparatively unimpressive 30%. Could there be even more upside for the biotech over the next 12 months? Based on Wall Street price targets, there is. Let's find out whether investors should rush to invest in CRISPR Therapeutics before the stock (hopefully) rises even more.

Plenty of catalysts on the way

CRISPR Therapeutics' average price target (according to Yahoo! Finance) is $82.55, which implies an upside of almost 51% from its current levels, as of this writing. Some individual analysts are even more bullish on the stock. For instance, Piper Sandler's Edward Tenthoff has a target price of $110 on CRISPR Therapeutics, implying the company could slightly more than double over the next 12 months. It's not too difficult to see why Tenthoff and other analysts are excited about the biotech's prospects. CRISPR Therapeutics could have important clinical trial data readouts in the coming months that could jolt its share price, provided they are positive. Some of the candidates the gene-editing specialist is working on could represent significant breakthroughs in their respective niches.

Image source: The Motley Fool.

For instance, CRISPR Therapeutics is developing an anticoagulant called CTX611. There are several effective blood thinners already on the market, but they tend to cause heavy bleeding as a side effect. CTX611 is being developed to help address that problem, and, in addition, it is a long-acting option, whereas many existing medicines in this niche are taken daily. CRISPR Therapeutics is going after a market worth about $20 billion annually with this product. Positive results from an ongoing clinical trial for this therapy (due later this year) could send the stock soaring. CRISPR Therapeutics has several other promising pipeline candidates across oncology and other areas.

And beyond the company's pipeline, CRISPR Therapeutics' sole approved product could make significant progress over the next 12 months. The biotech developed Casgevy, a medicine for sickle cell disease and transfusion-dependent beta-thalassemia, in collaboration with Vertex Pharmaceuticals. Casgevy has not generated much sales yet, despite receiving approval in 2023. That's because it is an ex vivo gene-editing medicine that is complex to administer (it requires a cell collection and editing process). It is also expensive, although CRISPR Therapeutics and its partner, Vertex Pharmaceuticals, have made progress on getting third-party payers on board.

Recently, the two partners announced that they were requesting approval for Casgevy for children between the ages of five and 11. This could meaningfully improve the medicine's addressable market and help boost its sales. It may not happen in 2027, but within a few years, there is a good chance that Casgevy will generate over $1 billion in annual revenue, and that's another reason to be bullish on CRISPR Therapeutics.

Proceed with caution

Will CRISPR Therapeutics' shares actually double (or more) in the next 12 months? A lot would have to go right for that to happen, including positive clinical trial results across the board -- not just for CTX611. On the flipside, clinical setbacks will send its stock down. Still, CRISPR Therapeutics has proven that its CRISPR-focused gene-editing platform can deliver medical breakthroughs with Casgevy, and the company has multiple shots on goal. It boasts a broad portfolio of assets, at least a couple of which are likely to eventually earn approval. Meanwhile, funding shouldn't be a major issue for the company.

CRISPR Therapeutics ended the first quarter with $2.4 billion in cash, equivalents, and marketable securities, and as cash from Casgevy starts to come in more, the biotech should have enough to fund its R&D expenses. My view is that CRISPR Therapeutics is somewhat risky, since a series of clinical setbacks could sink its stock price. However, given its innovative platform and deep pipeline, the stock looks attractive to those with a relatively high risk tolerance.

Prosper Junior Bakiny has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends CRISPR Therapeutics and Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.