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RBC Capital has raised its price target on Nurix Therapeutics (NASDAQ:NRIX) to $28.00 from $27.00 while maintaining an Outperform rating on the stock. Currently trading at $11.93, the stock sits well below analyst targets ranging from $16 to $41. The adjustment follows promising data presented at the European Hematology Association (EHA) meeting for the company’s lead drug candidate bexdeg. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value calculation.
The research firm highlighted bexdeg’s consistent promise in chronic lymphocytic leukemia (CLL), noting there is "considerable and likely underappreciated revenue opportunity" for an agent that demonstrates broad potency against BTK inhibitor-resistant tumors. RBC believes this potential exists even with a close competitor showing similar profile and timelines. InvestingPro data shows the company maintains a strong financial position with a current ratio of 6.26, indicating ample liquidity to fund its development programs.
RBC Capital expressed confidence in bexdeg’s prospects, stating there is a "high likelihood of success" at least in late-line treatments, with "realistic optionality" for use in earlier treatment lines. The firm’s analysis suggests the drug has already achieved "solid de-risking."
The investment bank also noted growing interest in the broader applications of Nurix’s degrader technology in immunology and inflammation, with proof-of-concept work beginning for bexdeg and progress in STAT6 and IRAK4 programs. Nurix maintains "solid partnership economics" in these additional programs, according to RBC.
RBC Capital concluded that the opportunity for bexdeg, the "scarcity value" of Nurix’s degrader platform, and the long-term pipeline potential appear "meaningfully undervalued" at current stock prices. With a market capitalization of $912.5 million and an overall Financial Health score of "FAIR" from InvestingPro, investors can access comprehensive analysis and additional insights through the platform’s detailed Pro Research Report, available for over 1,400 US stocks including NRIX.
In other recent news, Nurix Therapeutics has announced a significant licensing agreement with Sanofi (NASDAQ:SNY), which has exercised its option to exclusively license Nurix’s STAT6 degrader development candidate, NX-3911. This agreement includes a $15 million license extension fee for Nurix, with the potential for up to $465 million in future development, regulatory, and commercial milestones, along with royalties on net product sales. Analysts at Stifel have reiterated a Buy rating for Nurix, maintaining a price target of $35.00, following the announcement of the Sanofi deal. Nurix is also preparing to present updated data on its bexobrutideg trials at the upcoming European Hematology Association meeting, which could provide insights into the treatment’s safety and efficacy. Additionally, Nurix has reported promising preclinical data on several drug candidates at the American Association for Cancer Research Annual Meeting, showcasing advances in protein degradation therapies for cancer treatment. The company’s BRAF degrader, NRX-0305, has demonstrated effectiveness across BRAF-mutant cancers, including melanoma, non-small cell lung cancer, and colorectal cancer. Moreover, Nurix’s Aurora A kinase degraders have shown potential in addressing pediatric cancers like neuroblastoma and medulloblastoma. These developments highlight Nurix’s strategic collaborations and innovative approaches in advancing therapeutics for cancer and inflammatory diseases.
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