Jefferies cuts Pyxis Oncology target to $6, maintains Buy

Published 18/03/2025, 21:50

Tuesday, Pyxis Oncology Inc. (NASDAQ:PYXS) saw its price target reduced by Jefferies from $12.00 to $6.00, yet the firm retained a Buy rating on the stock. Currently trading at $1.06, the stock has shown resilience with an 11.5% gain over the past week, despite a 76% decline over the past year. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics.

In their commentary, Jefferies noted that Pyxis Oncology has multiple significant data events anticipated in the second half of 2025 into the first half of 2026 for its lead program, MICVO, a tumor stroma-targeting antibody-drug conjugate (ADC). This includes data on the treatment as a monotherapy and in combination with pembrolizumab for head and neck squamous cell carcinoma (HNSCC). InvestingPro data reveals the company has a strong liquidity position with a current ratio of 7.33, indicating robust short-term financial stability.

The firm also pointed out the competitive landscape, with more mature HNSCC data sets expected in the first half of 2025, likely to be presented at the American Society of Clinical Oncology (ASCO) meeting in 2025. These data, from competitors like MRUS and BCAX, will help to inform Pyxis Oncology’s strategic decisions and establish benchmarks for the company’s programs.

Jefferies highlighted Pyxis Oncology’s strong cash position, reporting $146 million with a financial runway extending into the second half of 2026. This capital is expected to support the company well beyond the upcoming data catalysts, potentially mitigating investor concerns about short-term financing needs. InvestingPro research indicates the company holds more cash than debt on its balance sheet, though it’s worth noting they’re quickly burning through cash. For deeper insights into Pyxis’s financial health and 8 additional ProTips, consider exploring the comprehensive Pro Research Report.

The reevaluation of the price target reflects both the potential of Pyxis Oncology’s lead program and the market conditions it faces. Despite the lowered target, the maintained Buy rating suggests that Jefferies remains optimistic about the company’s prospects based on its pipeline and financial health.

In other recent news, Pyxis Oncology, Inc. has received Fast Track Designation from the FDA for its investigational drug PYX-201, aimed at treating recurrent or metastatic head and neck squamous cell carcinoma. This designation is intended to expedite the development of drugs addressing serious conditions. Pyxis Oncology is actively conducting clinical trials for PYX-201, both as a standalone treatment and in combination with Merck (NSE:PROR)’s KEYTRUDA®. In a strategic move, the company has decided to prioritize PYX-201, following positive preliminary Phase 1 data, and will suspend investment in its PYX-106 program. Analysts from H.C. Wainwright and RBC Capital have both adjusted their price targets for Pyxis Oncology, citing the company’s strategic focus on PYX-201. H.C. Wainwright reduced the price target to $5.00 while maintaining a Buy rating, while RBC Capital adjusted their target to $8.00 with an Outperform rating. The analysts view the shift as a prudent step to manage operational expenses and focus on promising treatments. Pyxis Oncology’s current financial position is expected to support the planned trials of PYX-201 into the second half of 2026.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.