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On Tuesday, Deutsche Bank (ETR:DBKGn) initiated coverage on Immunocore Holdings (NASDAQ:IMCR) with a Buy rating and a price target of $65.00. According to InvestingPro data, this adds to a strong analyst consensus, with 10 analysts recently revising their earnings estimates upward. The company maintains a "GREAT" financial health score of 3.18 out of 5, supported by strong liquidity metrics. The firm’s analysis suggests a strong potential for Immunocore’s ImmTAX platform and its leading therapy, Tebentafusp, also known as KIMMTRAK. Tebentafusp has become the standard of care for patients with HLA-A02+ 1L metastatic Uveal Melanoma (mUM), due to its demonstrated overall survival (OS) benefit.
The unique aspect of Tebentafusp’s performance is that while objective response rate (ORR) and progression-free survival (PFS) were not significantly different, it still indicates that current radiological techniques and RECIST criteria may not fully capture the potential of Immunocore’s ImmTAC platform to reduce circulating tumor DNA and improve overall survival.
Deutsche Bank analysts believe that the current valuation of Immunocore’s stock offers an attractive risk/reward scenario. Tebentafusp’s niche in treating 1L mUM is seen as providing a foundational valuation for the company. Additionally, there is a possibility of patent extension for Tebentafusp until 2035, as indicated in Immunocore’s 2024 10K filing. The company’s current market capitalization stands at $1.57 billion, with analyst price targets ranging from $24.71 to $100 per share. For deeper insights into Immunocore’s valuation and growth potential, InvestingPro subscribers can access comprehensive financial analysis and additional ProTips.
Looking forward, the expansion of Tebentafusp into second-line and beyond Cutaneous Melanoma (mCM) is expected to provide further upside, with Phase 3 data anticipated in the second half of 2026. Although 2L+ CM differs from mUM, early signs suggest that Tebentafusp may improve overall survival rates compared to the standard of care.
Moreover, Deutsche Bank notes that Brenentafusp, targeting PRAME x CD3, could modestly extend Immunocore’s reach into Platinum Resistant Ovarian Cancer (PROC) by 2026. However, the firm remains cautious about Brenentafusp’s potential in first-line Cutaneous Melanoma due to the high benchmarks set by competitors in the space. Financial data from InvestingPro shows the company’s strong revenue growth of 25.75% in the last twelve months, with an impressive gross profit margin of 96.68%. While currently unprofitable, the company maintains a healthy balance sheet with more cash than debt and a current ratio of 6.36.
In other recent news, Immunocore Holdings plc reported impressive first-quarter earnings and revenue that exceeded analyst expectations. The biotechnology company posted adjusted earnings per share of $0.10, surpassing the anticipated -$0.39 by $0.49. Revenue reached $93.9 million, outpacing the forecasted $86.1 million, largely driven by strong sales of its lead product, KIMMTRAK. KIMMTRAK’s net product sales saw a 33% year-over-year increase, with significant contributions from the U.S., Europe, and other international regions. Immunocore’s net income for the quarter was $5.0 million, a notable improvement from a net loss of $24.4 million in the same period last year. Research and development expenses were slightly reduced to $56.5 million from $57.5 million a year ago. The company reported having $837.0 million in cash, cash equivalents, and marketable securities at the end of the quarter. Immunocore also confirmed its progress in clinical trials, aiming to complete enrollment for its Phase 3 TEBE-AM trial by the first half of 2026 and select the dose for its Phase 3 PRISM-MEL-301 trial by the second half of 2025.
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