Oppenheimer Starts Cellectis (CLLS) at Outperform, PT $65; Cheap, Lesser-Known CAR-T Play

(Updated - May 22, 2015 9:23 AM EDT)

Oppenheimer analyst Christopher Marai initiated coverage on lesser-known CAR-T stock Cellectis (NASDAQ: CLLS) with an Outperform rating and a price target of $65, suggesting 111% upside to Thursday's close.

"CLLS's gene-editing technology enables the production of allogeneic, "off-the-shelf" drug-like CAR-T therapeutics without the risk of GVHD," the analyst said. "Importantly, Cellectis' approach facilitates the engineering of new mechanisms-of-action into cell-based therapeutics, including the creation of paradigm shifting "smart drugs" that have the potential to disrupt the pharmaceutical industry, much like the first antibody-drugs did."

Further, Marai notes the shares are cheap and less publicized versus CAR-T peers like bluebird bio (NASDAQ: BLUE), Kite Pharma (NASDAQ: KITE) and Juno Therapeutics (NASDAQ: JUNO). Also, despite being early in development, the analyst notes Cellectis has de-risked many aspects including:

1) supply chain fit and manufacturing that others do not (and is not trivial for any of these cos).

2) data biology of cell therapies is well established, little concern it wont work - CLLS approaches are validated by others

3) competitive advantage through leadership with proprietary disruptive gene editing technology

The analyst recommends owning the stock ahead of first-in-human data for UCART19 in 2016, which they anticipate will lead to appreciation of these transformational therapeutics and CLLS shares.

For an analyst ratings summary and ratings history on Cellectis click here. For more ratings news on Cellectis click here.

Shares of Cellectis closed at $30.80 yesterday.

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