Jefferies cuts Nektar stock target to $1.00, maintains hold

Published 13/03/2025, 10:22
Jefferies cuts Nektar stock target to $1.00, maintains hold

On Thursday, Jefferies analyst Roger Song adjusted the price target for Nektar Therapeutics (NASDAQ:NKTR) shares, reducing it to $1.00 from the previous target of $1.30, while maintaining a Hold rating on the stock. According to InvestingPro data, the stock currently trades at $0.82, with analysts’ targets ranging from $1.30 to $7.00, suggesting potential upside. The company maintains a "Fair" overall financial health score. The revision follows Nektar’s steady progress in its clinical programs, particularly with the anticipated delivery of Phase 2b topline data for its drug candidate Rezpeg, which is being developed for atopic dermatitis (AD) and is expected in the second quarter of 2025. Additional results for alopecia areata (AA) are projected for the fourth quarter of 2025.

Nektar is also advancing Rezpeg in a new indication for Type 1 Diabetes (T1D), having recently announced a partnership with TrialNet to initiate a Phase 2 trial involving 66 patients in 2025. The company’s pre-clinical pipeline is progressing, with plans to submit an Investigational New Drug (IND) application for NKTR-0165, targeting TNFR2, within the same year.

The company’s financial position appears stable, with a cash runway of $269.1 million, which is expected to extend into the fourth quarter of 2026. InvestingPro analysis shows that while Nektar holds more cash than debt on its balance sheet and maintains a healthy current ratio of 4.24, the company is quickly burning through its cash reserves. This financial forecast suggests that Nektar is equipped to support its ongoing research and development activities without imminent funding concerns.

The update from Jefferies reflects the firm’s assessment of Nektar’s current status and future potential based on the company’s clinical development timelines and financial health. As Nektar continues to pursue its clinical goals, investors and stakeholders will likely monitor the upcoming trial results and regulatory milestones that could influence the company’s trajectory and stock performance. For deeper insights into Nektar’s financial health and growth prospects, InvestingPro subscribers can access comprehensive analysis, including 7 additional ProTips and the detailed Pro Research Report, which provides actionable intelligence for informed investment decisions.

In other recent news, Nektar Therapeutics reported its fourth-quarter 2024 earnings, which exceeded analysts’ expectations. The company achieved an earnings per share (EPS) of $0.03, contrasting with the anticipated loss of $0.16 per share. However, its revenue slightly missed forecasts, coming in at $29.2 million compared to the expected $29.81 million. Nektar ended the year with a strong cash position of $269.1 million, supported by the sale of its Huntsville manufacturing facility. Full-year revenue was reported at $98.4 million, with a net loss of $119 million.

The company’s revenue projection for 2025 is between $40 million and $50 million, focusing on its lead program, Respegg, in atopic dermatitis and alopecia areata. Additionally, Nektar anticipates key data from Phase 2b studies in 2025, which could significantly influence future performance. In other developments, analysts showed interest in Nektar’s Respegg dosing strategy and its potential impact on the market. The company also announced a collaboration with TrialNet for a Phase 2 clinical trial to investigate Respegg in patients with new-onset Type 1 diabetes. These recent developments reflect Nektar’s continued efforts to advance its clinical programs and strengthen its financial position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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