BTIG keeps Nektar stock Neutral with $4.00 target

Published 13/03/2025, 10:34
BTIG keeps Nektar stock Neutral with $4.00 target

On Thursday, BTIG research firm maintained its Neutral rating on Nektar Therapeutics (NASDAQ:NKTR) shares, with a steady price target of $4.00, significantly above the current trading price of $0.82. BTIG analyst Julian Harrison highlighted the anticipated topline results from the Phase 2b trial of REZPEG in atopic dermatitis (AD), which are expected in June 2025. Harrison noted that the risk/reward balance ahead of the data release remains favorable and that recent failures in the space do not negatively impact the outlook for REZPEG. According to InvestingPro data, analyst targets for the stock range from $1.30 to $7.00, reflecting diverse views on the company’s potential.

The company has completed enrollment for the Phase 2b trial of REZPEG for a second indication, alopecia areata (AA), with results anticipated in the fourth quarter of 2025. The analyst sees potential for REZPEG to offer a better alternative to current treatments, citing its potential as a cleaner and more active option that could be easier for physicians to prescribe. InvestingPro analysis shows the company maintains a ’Fair’ overall financial health score, though it’s worth noting that analysts don’t expect profitability this year.

Additionally, Nektar is planning to investigate REZPEG’s use in Type 1 diabetes in a collaboration with TrialNet, with a Phase 2 trial expected to begin in 2025. The majority of the trial costs will be covered by TrialNet. Beyond REZPEG, BTIG sees further potential in Nektar’s portfolio with the retained rights to dapirolizumab, which is in partnership with Biogen (NASDAQ:BIIB), and NKTR-0165, a TNFR2 agonist with an Investigational New Drug (IND) submission planned for the second half of 2025.

Nektar concluded the fiscal year 2024 with $269.1 million in cash and equivalents. The company has guided that these funds should be sufficient to support operations into the fourth quarter of 2026. While InvestingPro data indicates the company holds more cash than debt and maintains strong liquidity with a current ratio of 4.24, it’s also rapidly burning through its cash reserves. Harrison’s comments emphasize the company’s solid financial position and the multiple ongoing research initiatives that could contribute to Nektar’s future growth.

In other recent news, Nektar Therapeutics reported its fourth-quarter 2024 earnings, exceeding expectations with an earnings per share (EPS) of $0.03, compared to the anticipated loss of $0.16. The company’s revenue for the quarter was $29.2 million, slightly below the forecast of $29.81 million. Despite the revenue miss, Nektar’s full-year revenue reached $98.4 million, with a net loss of $119 million. The company projects its 2025 revenue to range between $40 million and $50 million. Jefferies recently adjusted Nektar’s stock target to $1.00 from $1.30, maintaining a Hold rating, reflecting Nektar’s clinical progress and financial stability. Nektar is advancing its drug candidate Rezpeg in multiple indications, including atopic dermatitis and alopecia areata, with key data expected in 2025. The company also announced a partnership with TrialNet for a Phase 2 trial of Rezpeg in Type 1 Diabetes, set to begin in 2025. Nektar’s financial health remains robust, with a cash runway extending into the fourth quarter of 2026.

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