Bernstein SocGen Group analyst William Pickering reiterated an Outperform rating and $40.00 price target on Beam Therapeutics Inc (NASDAQ: BEAM).

The analyst commented: "Strong data but stock sells off. Now catalyst-light but grossly undervalued; BEAM announced additional clinical in AATD, showing an improvement in serum AAT vs. last year’s data, and announcing 60 mg x1 as the pivotal dose (PR, presentation). The 16.1 uM serum AAT beat our expectation for ~15 uM, but was surprising given that it came at 60 mg rather than the higher 75 mg dose. So why did BEAM stock fade so dramatically, underperforming the XBI by 7%? We think the most likely explanation is that BEAM no longer has any meaningful catalysts through EOY. Also possible is that investors are a bit skeptical the improved numbers are “real” given switch to LC-MS and lack of clear bridge from prior data. We acknowledge BEAM is now catalyst light, but valuation looks highly compelling: We believe AATD can deliver $1.9B in unadjusted peak sales ($1.6B risk-adjusted), which should be worth $3B in EV. Add in $1B in cash and that implies 75% upside, with SCD not included. Even with a highly punitive 1x multiple we would still get to 15% upside, again excluding SCD."

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Shares of Beam Therapeutics Inc closed at $23.12 yesterday.