Morningstar has issued a BUY recommendation on CRISPR Therapeutics AG (NASDAQ: CRSP), underscoring the stock’s significant undervaluation and robust long-term prospects, in its latest research report dated July 9, 2025. The firm’s fair value estimate stands at $106 per share, nearly double the recent closing price of $54.82. Morningstar’s analysis highlights the company’s pioneering gene-editing platform, the commercial rollout of its flagship therapy Casgevy, and a promising—albeit early-stage—pipeline. However, investors are cautioned about the very high uncertainty associated with the company’s future, given its nascent portfolio and the evolving competitive landscape.

Morningstar’s Investment Thesis and Stock Levels

BUY Recommendation and Valuation Levels:

Morningstar assigns a BUY rating, citing a fair value estimate of $106 per share for CRISPR Therapeutics AG. The stock is currently trading at a substantial discount, with a Price/Fair Value ratio of just 0.52.

The market capitalization as of July 9, 2025, is $5.19 billion, with the stock closing at $54.82 on July 8, 2025.

Morningstar’s 5-star price threshold is $53, while the 1-star price is $185.50, indicating the current price is deep in undervalued territory.

The research house sees the current price as an attractive entry point for long-term, risk-tolerant investors.

Target for Investors:

Investors are advised to consider accumulating CRSP shares at current levels, with an upside target of $106 per share over the medium-to-long term, contingent on successful execution of the company’s pipeline and commercial strategy.

Business Overview and Strategic Positioning

Pioneering Gene Editing Platform:

CRISPR Therapeutics specializes in CRISPR/Cas9-based therapeutics, a groundbreaking technology enabling precise gene edits to treat genetically defined diseases.

The company’s proprietary platform is well-positioned to address rare diseases and disorders with high unmet medical need, providing a potential runway for blockbuster therapies.

Commercialization of Casgevy:

Casgevy, developed in partnership with Vertex Pharmaceuticals, targets sickle cell disease (SCD) and transfusion-dependent beta-thalassemia (TDT).

The therapy has received regulatory approval in the US, EU, UK, and other key geographies, with over 65 global treatment centers operational and more than 90 patients having undergone cell collection.

Casgevy is priced at $2.2 million, undercutting BlueBird Bio’s Lyfgenia, which is priced at $3.1 million and carries a black box warning for blood cancer risk.

Diversified Early-Stage Pipeline:

Beyond Casgevy, CRISPR Therapeutics is advancing programs in immuno-oncology (notably next-generation CAR-T therapies CTX112 and CTX131), cardiovascular disease, and stem cell-derived therapies for Type 1 diabetes.

The company recently announced a collaboration with Sirius Therapeutics on siRNA targets, bolstering its cardiovascular pipeline and leveraging early promising data.

Financial Health and Capital Allocation

Sound Balance Sheet:

As of year-end 2024, the company reported $1.9 billion in cash and marketable securities, maintaining minimal debt and a lean operational structure.

CRISPR Therapeutics does not pay a dividend, opting instead to reinvest in research and development to drive pipeline progress.

Profitability and Forecasts:

Morningstar forecasts revenue to ramp up from $35 million in 2024 to $436.98 million by 2029, with the company expected to turn profitable by 2029.

Earnings per share are projected to move from a loss of $4.34 in 2024 to a positive $2.30 in 2029, reflecting the anticipated commercial success of Casgevy and future pipeline assets.

Competitive Landscape and Risks

Peer Comparison:

CRISPR’s closest competitors include Intellia Therapeutics (NTLA), BioNTech (BNTX), and Moderna (MRNA). While all are active in gene therapy and biotechnology, CRISPR Therapeutics is distinguished by its pure-play focus on gene editing.

Casgevy’s main rival, Lyfgenia, faces pricing and safety disadvantages, potentially steering patients and providers toward CRISPR’s offering.

High Uncertainty and Execution Risks:

Morningstar assigns a “Very High” uncertainty rating, citing the early-stage nature of most pipeline assets and the inherent risks of regulatory approval, commercialization, and reimbursement.

The competitive gene-editing landscape is evolving rapidly, with multiple players vying for market share and potential patent litigation risks looming.

ESG Considerations:

The company’s ESG risk rating is “Medium,” with product governance and access to basic services highlighted as key risk factors. The company’s ability to navigate regulatory scrutiny and reimbursement dynamics will be crucial.

Key Catalysts and Profit Drivers

Blockbuster Potential for Casgevy:

Morningstar expects Casgevy to achieve blockbuster status, driven by high unmet need, robust pricing power, and expanding global market access.

The profit-sharing agreement with Vertex allocates 40% of Casgevy’s profits to CRISPR Therapeutics, with two additional Phase 3 studies underway to broaden the addressable patient population.

Pipeline Milestones:

Next-generation CAR-T candidates (CTX112 and CTX131) are progressing in clinical trials, with CTX112 showing strong efficacy and a 20% probability of approval by 2028.

Early-stage cardiovascular and diabetes programs, while carrying low probabilities of near-term approval, offer significant optionality for long-term value creation.

Investor Actionables and Strategic Outlook

Accumulation Strategy:

Investors with a high risk tolerance should consider accumulating CRSP shares at current levels, targeting the $106 fair value estimate as a medium-term objective.

The company’s strong cash position and advancing pipeline provide a buffer against near-term volatility, while the stock’s deep discount to fair value offers asymmetric upside potential.

Monitor Key Developments:

Track the commercial ramp of Casgevy, regulatory milestones for pipeline assets, and updates on competitive dynamics, particularly in the CAR-T and gene therapy spaces.

Watch for financial updates regarding cash burn, R&D investments, and potential strategic partnerships or acquisitions.