H.C. Wainwright cuts TuHURA Biosciences target to $12; Keeps Buy

Published 03/04/2025, 12:34
H.C. Wainwright cuts TuHURA Biosciences target to $12; Keeps Buy

On Thursday, H.C. Wainwright analyst Robert Burns adjusted the price target on TuHURA Biosciences (NASDAQ:HURA) stock, reducing it to $12.00 from the previous $13.00, but maintained a Buy rating on the company. Currently trading at $3.48, HURA’s stock sits well below the broader analyst target range of $9.25 to $15.00. InvestingPro analysis indicates the stock is currently overvalued relative to its Fair Value, with additional insights available through 7 exclusive ProTips. Burns noted that TuHURA Biosciences posted a net loss of $1.21 per share for 2024, which was significantly wider than the expected loss of $0.35 per share. The company’s research and development (R&D) and selling, general, and administrative (SG&A) expenses for the year totaled $13.3 million and $4.3 million, respectively. These figures contrast with the analyst’s earlier estimates of $3.4 million for R&D and $7.7 million for SG&A expenses.

Burns further highlighted that TuHURA ended the year 2024 with approximately $12.7 million in cash, cash equivalents, and marketable securities. The company maintains a healthy current ratio of 3.68, indicating strong liquidity. According to his assessment, these funds are likely to support the company’s operations into the fourth quarter of 2025, taking into account the expected payment from warrant exercise notes. Investors tracking HURA’s financial health can access comprehensive metrics through InvestingPro, which offers detailed analysis of the company’s balance sheet strength. The analyst anticipates an equity raise in the second quarter of 2025, which has been factored into the financial projections.

Despite the wider net loss and adjustments in financial estimates, H.C. Wainwright reaffirmed their confidence in the biotech firm with a Buy rating. The revised 12-month price target of $12 reflects the new financial outlook as the firm modulates its expectations based on the latest available data. With the next earnings report scheduled for May 14, 2025, investors should mark their calendars for potential catalysts. Burns’ commentary underscores the firm’s ongoing support for TuHURA Biosciences while acknowledging the need to update the price target in light of the company’s financial performance and future capital requirements.

In other recent news, TuHURA Biosciences, Inc. announced the issuance of secured promissory notes totaling $3,011,372.60. This move comes as a result of warrant exercises by four holders, including KP Biotech Group, LLC and CA Patel F&F Investments, LLC, who received over 1 million shares of common stock. The notes have an annual interest rate of 12%, with a maturity date of May 30, 2025. If unpaid by then, the interest rate will rise to 18%. Additionally, TuHURA Biosciences has made a significant change in its financial oversight by appointing Cherry Bekaert (EBR:BEKB) LLP as its new independent registered public accounting firm. This decision followed the dismissal of Marcum LLP, which had served as the auditor before the company’s recent merger and rebranding. The change in auditors is part of TuHURA’s ongoing integration efforts post-merger. These developments are intended to strengthen the company’s financial management and operational strategies.

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