Guggenheim cuts Nautilus Biotech target to $2.50, keeps buy rating

Published 28/02/2025, 14:48
Guggenheim cuts Nautilus Biotech target to $2.50, keeps buy rating

On Friday, Guggenheim Securities adjusted its outlook on Nautilus Biotechnology shares (NASDAQ:NAUT), reducing the price target from $4.00 to $2.50, yet reaffirming a Buy rating on the stock. The shares, currently trading at $1.17, have fallen 24% in the past week alone. According to InvestingPro analysis, the stock appears undervalued, with analyst targets ranging from $3 to $5. The revision comes after Nautilus Biotechnology announced a delay in its commercial launch timeline, now expected by the end of 2026, a year later than the previous end-of-2025 target.

Subbu Nambi of Guggenheim highlighted the company’s focus on the commercial launch timeline and the postponement of its partnership and early access programs, which were initially set to begin this year. Nautilus Biotechnology is now centering its efforts on forming partnerships and generating data in the current year. The early access program will be delayed to align with the broad-scale launch, anticipated to occur 6-9 months prior to full commercialization.

The delay in Nautilus Biotechnology’s timeline has prompted Guggenheim to reassess its price expectations for the company’s stock. The firm’s decision to maintain a Buy rating indicates a continued positive outlook on the stock’s potential despite the revised launch schedule. InvestingPro data reveals the company holds more cash than debt on its balance sheet, though it’s quickly burning through cash reserves. Subscribers can access 10 more exclusive ProTips about NAUT’s financial position.

Nambi’s commentary on the situation was clear, noting the specific adjustments and reasoning for the price target change. "Given the delay, we are lowering our PT from $4 to $2.50," stated Nambi. This change reflects the impact of the delayed commercialization on the valuation of Nautilus Biotechnology.

The announcement of the adjusted price target and maintained Buy rating by Guggenheim provides investors with updated guidance on Nautilus Biotechnology as it navigates the postponement of its product launch and early access programs. For a comprehensive analysis of NAUT’s financial health, valuation, and growth prospects, investors can access the detailed Pro Research Report available exclusively on InvestingPro, covering over 1,400 US stocks with expert insights and actionable intelligence.

In other recent news, Nautilus Biotechnology Inc. reported a net loss of $17.6 million for the fourth quarter of 2024, with a fiscal year net loss totaling $70.8 million, marking an 11% increase from the previous year. The company announced a delay in the launch of its proteomics platform, now expected in late 2026, which has raised investor concerns. Nautilus also reported a significant decrease in cash reserves to $26 million, down from $264 million the previous year, prompting a 16% reduction in its workforce to manage expenses. Despite these challenges, the company plans to focus on probe optimization and surface chemistry improvements, with key milestones set for 2025, including providing its tau proteoform platform to researchers. Nautilus anticipates an early access program for its proteomics platform six to nine months before the commercial launch. The company is also working on signing its first tau-related partnership in 2025. These recent developments highlight Nautilus’ strategic adjustments in response to financial and operational challenges.

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