UPDATE: J.P. Morgan Initiates Coverage On Sangamo Biosciences On Potentially Disruptive Future

In a report published Friday, J.P. Morgan analyst Cory Kasimov initiated coverage on Sangamo Biosciences (NASDAQ: SGMO) with an Overweight rating and $22.00 price target.

In the report, J.P. Morgan noted, “We are initiating coverage of SGMO with an OW rating and YE15 price target of $22 based on the company's potentially transformative and broadly applicable Zinc Finger Protein (ZFP) technology platform. In our view, the level of specificity provided by SGMO's engineered ZFPs is a key differentiating factor vs. other gene therapy approaches. Although the company's pipeline is relatively early stage, data from the HIV program provides some encouraging POC as SGMO shifts its focus to monogenic diseases. Collaboration agreements with large cap biotechs (Biogen and Shire) further validate the platform.

"Timely execution and advancement of the pipeline in 2H14/2015, along with additional updates for the HIV program, should provide important opportunities to further assess progress. With a differentiated and highly productive technology platform as well as a diversified early stage pipeline, we see SGMO as an attractive way to gain exposure to the emerging gene therapy field.”

Sangamo Biosciences closed on Thursday at $11.88.