Guggenheim raises Inflarx stock target to $10, maintains Buy rating

Published 26/03/2025, 12:50
Guggenheim raises Inflarx stock target to $10, maintains Buy rating

On Wednesday, Guggenheim Securities adjusted its outlook for Inflarx NV (NASDAQ:IFRX), increasing the price target to $10 from the previous $7 while sustaining a Buy rating on the stock. Currently trading at $1.33, the stock has seen a significant 46% decline year-to-date, though InvestingPro data shows two analysts have recently revised their earnings estimates upward. The move comes after Inflarx reported progress in its clinical programs and a solid financial standing.

Inflarx has recently achieved a key milestone by recruiting 30 patients for its pivotal Phase III trial of vilobelimab, a treatment for ulcerative Pyoderma Gangrenosum (PG). The company anticipates sharing interim analysis results with investors by the end of May 2025. Additionally, Inflarx began a Phase IIa study in December 2024, administering its first dose of INF904 for Chronic Spontaneous Urticaria (CSU) and Hidradenitis Suppurativa (HS), with top-line data expected in the summer of 2025.

The European Commission granted marketing authorization for vilobelimab in January 2025, allowing its use for SARS-CoV2-induced septic acute respiratory distress syndrome (ARDS). Although this approval may not significantly impact the market, it is considered a positive development for Inflarx.

Financially, Inflarx is in a robust position with a proforma cash balance of approximately $84 million, which is projected to fund operations into 2027. According to InvestingPro analysis, the company maintains more cash than debt on its balance sheet, with a healthy current ratio of 5.06, though it’s currently burning through cash rapidly. Guggenheim’s optimism is fueled by the updates on both vilobelimab and INF904, with the expectation that interim data from ongoing programs will highlight the company’s potential. For deeper insights into Inflarx’s financial health and additional analyst perspectives, investors can access more than 10 exclusive ProTips and comprehensive metrics through InvestingPro.

Guggenheim’s revised price target is based on a sum-of-the-parts, net present value (SOTP-NPV) methodology, reflecting a more favorable view of Inflarx’s prospects compared to the previous comparison-based target. With analyst targets ranging from $4.97 to $12.92, this adjustment underscores the firm’s confidence in Inflarx’s clinical advancements and financial health, despite the company’s current unprofitability and volatile stock performance.

In other recent news, InflaRx has launched a public offering of its ordinary shares and pre-funded warrants, with the net proceeds intended to support the clinical development of its pipeline candidates, including vilobelimab and INF904. The offering, managed by Guggenheim Securities, LLC, is contingent on market conditions and details have not been finalized. InflaRx has also received a Buy rating from H.C. Wainwright following the European Commission’s approval of its COVID-19 treatment, Gohibic. This treatment, an anti-C5a monoclonal antibody, is now approved in the EU for adult patients with SARS-CoV-2-induced acute respiratory distress syndrome. The approval is based on positive Phase 3 trial results showing a reduction in mortality. Despite the approval, InflaRx does not expect immediate significant changes to its cash burn rate. The company is in discussions with the FDA for potential full approval in the United States, though additional studies are required. H.C. Wainwright maintains an $8 price target for InflaRx, citing these developments and modest sales projections for Gohibic.

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