Benzinga | Jul 27, 2021 12:32PM EDT

Why BofA Is Turning Bullish On Prelude Therapeutics

Prelude Therapeutics Inc's (NASDAQ:PRLD) share price represents "a particularly attractive buying opportunity," and the stock has catalysts in the back half of the year, according to BofA Securities.

The Prelude Therapeutics Analyst: Tazeen Ahmad upgraded Prelude Therapeutics from Neutral to Buy and maintained a $60 price target.

The Prelude Therapeutics Takeaways: The company's PRMT5 approach in oncology "is differentiated with multiple shots on goal" and has the potential to be used in several cancer types, Ahmad said in the upgrade note.

"We think the previously reported clinical profiles of '543 and '811, albeit in a limited number of pts, provide early validation of PRLD's platform to treat indications with high unmet need," the analyst said.

"PRLD has multiple catalysts near term that could further de-risk the platform. Additional ph 1 data on '543 are expected to be presented at medical meetings in 2H, where we look for additional responses and a consistent safety profile. For '811, mgmt expects to establish a recommended expansion dose and initiate dose expansion cohorts in mid-2021, with additional data by YE."

"Recent pullback in PRLD's price leaves ~80% upside to our $60 PO, which we think warrants an upgrade on valuation alone," Ahmad said.

PRLD Price Action: Shares of Prelude Therapeutics were up 4.11% at $34.70 at last check Tuesday.