We recently compiled a list of the 12 Most Promising Biotech Stocks According to Wall Street Analysts. In this article, we are going to look at where CRISPR Therapeutics AG (NASDAQ:CRSP) stands against other biotech stocks.
Biotech Sector Set for Growth Amid Innovation and Investor Interest
The biotechnology sector is gaining new momentum with better market conditions, cutting-edge innovations, and growing investor attention. The industry has recovered from a challenging 2024 and is poised for significant expansion led by advances in personalized medicine, AI-driven drug discovery, and growing demand for biologics. MarketsandMarkets predicted that the global biotech market would expand by a strong 13%, from $483.0 billion in 2024 to $546.0 billion in 2025. This expansion demonstrates the sector’s tenacity and promise for growth.
The anticipated shift in the Federal Reserve’s interest rate policies is a key driver of this upturn. Biotech is sensitive to changing rate patterns since it requires a large amount of money for costly R&D and clinical testing. Lower rates make more funding available, which helps biotech companies expand, draw in venture capital, and expedite drug development, according to Genetic Engineering and Biotechnology News. A rate drop, according to analysts, may release billions of dollars in investment funds that have been put aside for fledgling biotech firms looking for steady funding.
Investor interest in biotech equities is growing. Biotech is still a high-growth industry with many chances for risk-takers, despite brief ups and downs. The comeback of biotech has been noted by leading investment banks. Citing solid fundamentals, improved clinical outcomes, and a supportive regulatory environment, Goldman Sachs referred to it as an “undervalued opportunity.” According to the firm, biotech equities have tremendous upside potential and an “option-like structure,” particularly when interest rates decline. Analysts at JPMorgan anticipate a recovery in biotech funding at the same time, pointing to indications of stability in manufacturing and research sectors that were negatively impacted by earlier funding shortages. Industry analysts predict that declining interest rates and advantageous investment circumstances may reopen the IPO window for businesses looking for institutional support, even though biotech IPOs have been quiet since 2021.
As gene editing, AI-powered drug discovery, and precision medicine transform how we treat uncommon genetic illnesses, autoimmune diseases, and cancer, scientific advances are also propelling the expansion of biotech. Biotech firms are meeting medical demands in ways that were unthinkable a decade ago because of developments in CRISPR gene editing and cell treatments. Given this, we will take a look at some of the best promising stocks from the biotech sector.
Our Methodology
For this article, we shortlisted stocks that met the following criteria: a market capitalization of over $2 billion, coverage by at least 15 analysts, and a price target upside of more than 20%. We then ranked the selected stocks based on their price target upside, as determined by Wall Street analysts, as of March 21, 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A laboratory cultivating cells for the development of gene and cell therapies.
CRISPR Therapeutics AG (NASDAQ:CRSP)
Analyst Upside: 73.65%
CRISPR Therapeutics AG (NASDAQ:CRSP) uses its patented CRISPR/Cas9 platform to create revolutionary gene-based medications for severe illnesses. Gene editing technique is used by the CRISPR/Cas9 platform to enable precise modifications to genomic DNA. The company’s product portfolio includes therapeutic projects in oncology, rare diseases, regenerative medicine, and other medical fields.
The main goal of CRISPR Therapeutics AG (NASDAQ:CRSP) is the strategic advancement of its clinical trial portfolio in the areas of autoimmune, diabetes, cancer, and cardiovascular diseases. For the company, the FDA’s approval and introduction of CASGEVY, a gene therapy for sickle cell disease (SCD) and transfusion-dependent beta-thalassemia (TDT) in patients aged 12 and up, has generated significant momentum. Additionally, the business has acquired regulatory permission for the medicine in several countries worldwide, including the European Union, Canada, Switzerland, and Great Britain, among others, and product launches are currently in progress. The drug’s continuous rollout is accelerating, and in 2025, fresh cell patient collection initiations are predicted to rise sharply. Globally, more than 50 CASGEVY-approved treatment centers (ATCs) have been operational.
CRISPR Therapeutics AG (NASDAQ:CRSP)’s balance sheet is robust as of December 31, 2024, with approximately $1.9 billion in marketable securities, cash, and cash equivalents. Analysts have a Moderate Buy rating on the stock. Over the past three months, 20 Wall Street analysts have set a 12-month price target with an average of $71.58. The high forecast is $120.00, while the low is $32.00. This average target reflects a potential upside of 73.65% from the current price of $41.22.
Overall, CRSP ranks 4th among the 12 most promising biotech stocks according to wall street analysts. While we acknowledge the potential of biotech companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CRSP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure. None: This article is originally published on Insider Monkey.
