Needham cuts Nurix stock target to $28, maintains Buy rating

The company concluded the year 2024 with around $610 million in cash reserves, which is expected to sustain its operations well into the first half of 2027. The quarter over quarter improvement in Nurix’s cash position was primarily attributed to an at-the-market equity sale. This move, however, led to increased dilution and necessitated an extension of the target timeline to the end of 2025.The decision to lower the price target was influenced by these financial maneuvers, as the analyst noted, "The q/q improvement in cash position was primarily driven via at-the-market equity sale which increased dilution and was partially offset by rolling out our target to YE:25. As a result, we are decreasing our price target from $29 to $28." Despite this modest reduction in the price target, the analyst’s continued endorsement of a Buy rating indicates a belief in Nurix’s potential value and prospects. For a deeper understanding of Nurix’s valuation and growth potential, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports. For a deeper understanding of Nurix’s valuation and growth potential, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports.

In 2024, Nurix achieved approximately $13 million in collaboration revenue, bolstered by a $5 million milestone payment from pharmaceutical giant Pfizer (NYSE:PFE) in the fourth quarter. The company’s research and development expenses for the same quarter climbed by 22% quarter over quarter to $67.2 million. Looking ahead, these expenses are anticipated to rise incrementally throughout 2025 as Nurix gears up for several critical studies, particularly for its drug candidate NX-5948. InvestingPro analysis reveals that analysts expect sales to decline in the current year, though the company maintains strong liquidity with a current ratio of 5.28.

The company concluded the year 2024 with around $610 million in cash reserves, which is expected to sustain its operations well into the first half of 2027. The quarter over quarter improvement in Nurix’s cash position was primarily attributed to an at-the-market equity sale. This move, however, led to increased dilution and necessitated an extension of the target timeline to the end of 2025.

The decision to lower the price target was influenced by these financial maneuvers, as the analyst noted, "The q/q improvement in cash position was primarily driven via at-the-market equity sale which increased dilution and was partially offset by rolling out our target to YE:25. As a result, we are decreasing our price target from $29 to $28." Despite this modest reduction in the price target, the analyst’s continued endorsement of a Buy rating indicates a belief in Nurix’s potential value and prospects.

In other recent news, Nurix Therapeutics has seen a series of significant developments. H.C. Wainwright has adjusted the price target for Nurix shares from $35 to $36 following the release of the company’s financial results for the fourth fiscal quarter of 2024. Despite a net loss of $0.75 per share and a shortfall in collaboration and license revenue, the firm reported a robust balance sheet, with approximately $609.6 million in cash and cash equivalents.

Nurix has also made key executive appointments, with John Northcott stepping in as the new Chief Commercial Officer and Anil Kapur joining the board of directors. These strategic moves come as the company prepares to advance its lead drug candidate, NX-5948, into pivotal clinical trials for chronic lymphocytic leukemia and other B-cell malignancies.

The company’s drug candidate NX-5948 has received Fast Track designation from the U.S. Food and Drug Administration for the treatment of adult patients with Waldenstrom’s macroglobulinemia. The European Medicines Agency has granted the drug PRIME designation for the treatment of chronic lymphocytic leukemia or small lymphocytic lymphoma.

In financial developments, Nurix plans to sell up to $300 million of its common stock through an equity distribution agreement with investment bank Piper Sandler & Co. Analyst firms H.C. Wainwright and UBS have maintained a Buy rating on the stock, with BMO Capital Markets setting a price target of $35.00 for Nurix shares. These are the recent developments that underline the growing interest in Nurix and its lead program, NX-5948.

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