H.C. Wainwright maintains Buy rating, $3 target on NextCure stock

On Tuesday, H.C. Wainwright analyst Emily Bodnar reaffirmed a Buy rating and a $3.00 price target for NextCure Inc . (NASDAQ: NASDAQ:NXTC), a clinical-stage biopharmaceutical company currently trading at $0.65 with a market capitalization of $18.18 million. The endorsement of the company’s stock is grounded in a detailed financial analysis projecting into the future. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value calculations.

Bodnar’s valuation is derived from a discounted cash flow (DCF) model that extends to 2040. The model applies a 12% discount rate and assumes a terminal value of -100%. The analyst’s current projections include potential revenue from LNCB74, a treatment for triple-negative breast cancer (TNBC), assigning it a 25% probability of success (POS). Bodnar notes that other indications NextCure is developing could provide additional upside to the target price. InvestingPro data reveals 10+ additional insights about NextCure’s financial health and market position.

The analyst also outlined several risks that could impact the valuation of NextCure. These risks encompass the emergence of safety issues in any of the company’s clinical or preclinical programs, clinical results that fall short of expectations, and the possibility of not achieving statistical significance in studies. Furthermore, the competitive landscape could pose a threat if commercial competition is greater than anticipated due to existing or upcoming treatments.

Regulatory decisions regarding NextCure’s assets are also considered a risk, as are potential financing needs. Bodnar assumes that the company has sufficient cash to continue operations into 2026 but estimates that approximately $175 million in additional financing will be required through 2040. Intellectual property protection and the risk of de-listing if the share price falls below $1 are additional factors noted by the analyst.

NextCure is focused on discovering and developing novel immunomedicines to treat cancer and other immune-related diseases. The company’s commitment to advancing its pipeline of treatments is reflected in the continued support from H.C. Wainwright, which sees potential value in NextCure’s approach to addressing serious medical conditions. The stock has experienced significant pressure, trading near its 52-week low after a 54% decline over the past six months, potentially presenting an opportunity for investors seeking undervalued healthcare stocks.

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