RBC Capital Maintains a Sector Perform Rating on Beam Therapeutics (BEAM), Here's Why

Beam Therapeutics Inc. (NASDAQ:BEAM) is one of the top gene therapy stocks to buy according to hedge funds. On February 25, RBC Capital adjusted the price target on Beam Therapeutics Inc. (NASDAQ:BEAM) to $26 from $22 and maintained a Sector Perform rating on the shares. The rating update came after the company reported its fiscal Q4 financial results, with the firm telling investors that Beam Therapeutics Inc. (NASDAQ:BEAM) is continually targeting BLA submission this year on sickle cell disease, and announced a non-dilutive debt deal with Sixth Street to support potential commercialization.

Beam Therapeutics Inc. (NASDAQ:BEAM) reported its fiscal Q4 and full-year 2025 results on February 24 and also announced the expansion of its liver-targeted genetic disease franchise with a new program, BEAM-304, for the treatment of phenylketonuria (PKU). PKU has a considerable unmet need and affects around 20,000 individuals in the United States. The company’s plans for 2026 include a focus on execution across its most advanced programs, including reporting updated Phase 1/2 data, further defining the pivotal path forward for BEAM-302, and preparing for a potential BLA submission for risto-cel as early as year-end.

Beam Therapeutics Inc. (NASDAQ:BEAM) also announced that it entered into a strategic financing agreement with Sixth Street for significant, long-term, non-dilutive capital to fund the potential launch of risto-cel in sickle cell disease (SCD). The company reported cash, cash equivalents, and marketable securities of $1.25 billion as of December 31, 2025, compared to $850.7 million as of December 31, 2024.

Beam Therapeutics Inc. (NASDAQ:BEAM) is a biotechnology company that develops precision genetic medicines through base editing, a technology that allows efficient and predictable single-base changes at targeted genomic sequences. The company’s lead programs focus on sickle cell disease and alpha-1 antitrypsin deficiency. Beam Therapeutics Inc. (NASDAQ:BEAM) is advancing programs in other genetic diseases as well, along with oncology and immunology. Its primary programs include BEAM-101, Engineered Stem Cell Antibody Paired Evasion (ESCAPE), BEAM-302, BEAM-301, and BEAM-201.

While we acknowledge the potential of BEAM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.