Do Analysts Care About Intellia Therapeutics (NTLA)’s Elevated Valuation?

Intellia Therapeutics may be overvalued with poor growth indicators, but the 24 analysts following the company give it an average rating of buy. The analysts have set target prices ranging from $44.0 to $154.0 per share, for an average of $87.71. At today's price of $43.24, Intellia Therapeutics is trading -50.7% away from its average target price, suggesting there is an analyst consensus of strong upside potential.

Intellia Therapeutics, Inc., a genome editing company, focuses on the development of curative therapeutics. Based in Cambridge, MA, the mid-cap Health Care company has 598 full time employees. Intellia Therapeutics has not offered a dividend during the last year.

Intellia Therapeutics does not have a meaningful trailing P/E ratio since its earnings per share are negative. Its forward EPS guidance is negative too, at -5.76. The average P/E ratio for the Health Care sector is 24.45. On the other hand, the market is undervaluing Intellia Therapeutics in terms of its net assets because its P/B ratio is 3.2. In comparison, the sector average is 4.16.

If analysts are willing to give the company a decent rating despite its valuation issues, its likely that they put significant weight behind Intellia Therapeutics's growth potential, as signaled by its 4.9% rate of revenue growth and capital expenditures that are growing at 71.2% on average each year.