Brokerage cuts Beam Therapeutics rating, PT on cash runway concerns

Beam Therapeutics

20/10/2023 12:14

** Brokerage Leerink Partners cuts PT on Beam Therapeutics
 BEAM.O  to $20 from $75 after the gene-editing specialist
announced a restructuring plan
    ** The new PT represents an 8.9% upside on the stock last's
close of $18.36   
        ** Brokerage also downgrades rating to "market perform"
from "outperform"
        ** Near to medium term catalyst path for the stock is
going to be more challenging due to restructuring - Leerink 
    ** Beam Therapeutics on Thursday said it will reduce its
workforce by nearly 20% as part of restructuring plan
        ** Expects to incur one-time expenses of about $6.6
million related to the workforce reduction
  
    ** BEAM's lead asset for sickle cell disease is unlikely to
have meaningful clinical evidence before 2025, at which point
co's cash runway may be quite short - Leerink
        ** Stock fell 11.7% on Thursday 
    ** 10 of 15 brokerages rate the stock "buy" or higher, and 5
"hold"; their median PT is $47 - LSEG data
    ** Up to last close, shares down 53% YTD
    

 (Reporting by Christy Santhosh)
 ((Christy.Santhosh@thomsonreuters.com))