BMO Capital Says Risk/Reward For This Gene Stock Assumes Clinical Success

BMO Capital initiated coverage on Beam Therapeutics Inc BEAM with a Market Perform rating and a price target of 41.
BMO writes that it appreciates the high potential of Beam's next-generation editing approach, but clinical validation is yet to be established.
Preclinical base editing data point to a favorable benefit/risk profile.
Also Read: Pfizer, Beam Ink Multi-Target Research Collaboration For In Vivo Base Editing Programs.
The analyst writes that Beam's lead pipeline asset in hemoglobinopathies could face competition as other therapies may receive approval in 2023.
Enrollment of the first patient for BEAM-101 is planned for 2H22.
"Approval of BEAM-101 with a mild preconditioning that would make BEAM-101 more attractive to patients," BMO writes.
The company is working on additional ex vivo and in vivo assets, with the most advanced targeting T-cell Acute Lymphoblastic Leukemia and Acute Myeloid Leukemia (IND filing in 2H22), which along with further developing/ optimizing gene-editing tools, could potentially provide long-term value.
Price Action: BEAM shares are up 11.60% at $35.96 during the market session on the last check Friday.

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