JPMorgan Starts Prelude Therapeutics (PRLD) at Overweight

JPMorgan analyst Joyce Zhou initiates coverage on Prelude Therapeutics (NASDAQ: PRLD) with a Overweight rating and a price target of $12.00.

The analyst comments: “Our positive outlook on PRLD shares is driven by lead asset PRT12396, a JAK2V617F mutant selective inhibitor, currently in phase 1 for V617F+ myeloproliferative neoplasms (MPNs). PRT12396 stands to improve on currently approved JAK inhibitors by selectively targeting mutant V617F+ cells, which could lead to a wider therapeutic window. Indeed, preclinical data supports the drug’s potential to be differentiated on both safety (hematologic toxicity) and in turn efficacy / disease-modifying activity (by maintaining dose intensity over longer treatment durations). We see PRT12396 as a multi-billion dollar product in myelofibrosis (MF) and polycythemia vera (PV) combined in the US alone, with several potential upside levers to the model including addressable patient population (if the company also chooses to pursue essential thrombocythemia / ET), penetration, and price.

Further, the option agreement with Incyte underscores the program’s potential value, though we currently assume a stand-alone model with no opt-in (deadline is February-May 2027). Should Incyte opt in, we see the probability-adjusted value of PRT12396 in the mid- (higher end) to high-single-digits / share range and attention likely shifting to Prelude’s second asset, PRT13722 (KAT6A selective degrader). While we do not formally include PRT13722 in our model currently, given it is earlier-stage (phase 1 to begin in 4Q26), we do note this product could ultimately tap into a large HR+/HER2- breast cancer market ($5-10B+ in the advanced/metastatic setting). The company’s mCALR degrader antibody conjugate (DAC) program provides another longer-term lever for upside (development candidate expected by YE26). Net-net, our Overweight rating is driven by PRT12396, though we also see plenty of pipeline optionality.”

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

Shares of Prelude Therapeutics closed at $4.47 yesterday.

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