Cathie Wood Is Betting Big on Intellia Therapeutics. Should You Buy NTLA Stock Here?
Disruptive innovation investor Cathie Wood recently invested in clinical-stage biotech company Intellia Therapeutics (NTLA). Cathie Wood’s Ark Investment Management strategically bought 560,600 shares of the gene-editing therapy firm, showing confidence in Intellia’s growth prospects.
There are positive analyst sentiments surrounding the firm’s pioneering therapies, which might become hugely successful in the future. So, should you consider buying NTLA stock now?
Intellia is a biotechnology company based in Cambridge, Massachusetts, specializing in the development of CRISPR/Cas9 gene-editing therapies. Its work spans both in vivo and ex vivo approaches, aiming to treat severe genetic conditions.
In vivo programs focus on delivering gene-editing tools directly into the body to target diseases like hereditary angioedema and transthyretin amyloidosis. Ex vivo efforts involve modifying cells outside the body for use in applications related to cancer and autoimmune disorders.
Utilizing a flexible and scalable technology platform, Intellia is developing a pipeline of innovative treatments with the potential to deliver long-lasting, potentially curative solutions for patients worldwide. The company currently has a market capitalization of $1.1 billion.
Over the past 52 weeks, NTLA stock has declined 57%. The shares had reached a 52-week high of $24.16 in late August 2024 but are now down 58% from this high. The stock is also down 14% year-to-date (YTD).
NTLA stock’s downturn is likely due to the firm halting some of its research programs and the development of its NTLA-3001 lung disease candidate. The company also reduced its workforce by 27%. These measures were implemented to preserve capital by streamlining operations and prioritizing late-stage assets.
On Aug. 7, Intellia reported its second-quarter results for fiscal 2025. The company’s collaboration revenue increased by 105% from the prior-year period to $14.25 million. At the heart of this increase was Intellia’s collaboration with biotech giant Regeneron Pharmaceuticals (REGN), which led to cost reimbursements.
The company’s expenses declined for the quarter due to lower costs incurred in employee-related expenses, stock-based compensation, research materials, and contracted services. Total operating expenses decreased from $146 million in Q2 2024 to $124.24 million in Q2 2025. Net loss per share dropped from $1.52 to $0.98 in Q2 2025.
At the end of the second quarter, Intellia had $630.51 million in cash, cash equivalents, and marketable securities. The company expects to fund its operations through the first half of 2027, leading up to the anticipated first commercial launch.
Moreover, Intellia’s in vivo hereditary angioedema treatment option, lonvo-z, is on track to appear for a Biologics License Application (BLA) in the second half of next year.
Wall Street analysts are also optimistic about Intella’s ability to recover some of its losses. For the current quarter, loss per share is expected to narrow by 25% year-over-year (YOY) to $1.01. For the current year, loss per share is expected to decrease by 16.5% annually to $4.11, then improve 2.7% to $4 in fiscal 2026.
After Intellia Therapeutics reported its Q2 results, Wall Street analysts moved to reaffirm their ratings on NTLA stock, indicating that their sentiments remain bullish.
RBC Capital analyst Luca Issi maintained an “Outperform” rating on NTLA stock, while lowering the price target from $25 to $21, indicating a more cautious but bullish outlook on Intellia. HC Wainwright analyst Mitchell Kapoor also maintained a “Buy” rating, lowering the price target from $30 to $25 to reflect anticipated market performance.
Wells Fargo reaffirmed its “Overweight” rating on NTLA following an announcement regarding Intellia’s development timeline for Nex-z, its treatment for ATTR-PN. Wells Fargo lowered its price target from $50 to $45.
Wall Street analysts are soundly bullish on Intellia Therapeutics, giving it a consensus “Moderate Buy” rating overall. Of the 28 analysts rating the stock, 19 analysts give it a “Strong Buy” rating, one analyst gives it a “Moderate Buy,” seven are cautious with a “Hold” rating, and one analyst provides a “Strong Sell” rating. The consensus price target of $34.38 represents 243% potential upside from current levels. The Street-high price target of $106 implies that NTLA could rise 957% from here.
While still in the clinical stage, Intellia Therapeutics shows significant prospects. Moreover, the company’s strategic streamlining could reduce costs and further conserve capital. Furthermore, analysts are bullish on NTLA stock. Therefore, following Cathie Wood, investors might consider buying shares.
On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com