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On Wednesday, Stifel analysts revised the price target for Nurix Therapeutics Inc (NASDAQ:NRIX), a biopharmaceutical company, reducing it to $35 from the previous $36 while maintaining a Buy rating on the stock. The adjustment comes amid a challenging year-to-date performance for Nurix shares, which have seen a decline of 53% compared to the 24% drop in the XBI, an exchange-traded fund tracking the biotech sector. According to InvestingPro data, the stock has fallen nearly 58% over the past six months and currently trades at $9.26, significantly below its 52-week high of $29.56. With a beta of 2.24, the stock exhibits notably higher volatility than the broader market.
Stifel's analysts remain optimistic about Nurix, citing the company's high-quality status and its lead asset, bexobrutideg, which is advancing towards registration in the competitive chronic lymphocytic leukemia (CLL) market. The market for CLL treatments is well-established and lucrative, and there is historical precedence for later-to-market products achieving significant market share by offering best-in-class treatment options. InvestingPro analysis reveals that while the company holds more cash than debt and maintains a strong current ratio of 6.46, it's currently experiencing rapid cash burn - a common characteristic among biotech companies in the development phase. Get access to 10+ additional ProTips and comprehensive financial metrics with InvestingPro.
The analysts anticipate that upcoming disclosures of additional data on bexobrutideg and plans for its registrational trial will enhance the market's understanding of the drug's potential. This clarity is expected to come alongside progress in Nurix's earlier-stage wholly-owned pipeline, with data updates for NX-2127 and NX-1607 also projected for fiscal year 2025.
Furthermore, Nurix's progress in autoimmune indications, particularly with bexobrutideg, is seen as a positive development. The opening of a cohort for warm autoimmune hemolytic anemia (wAIHA) under the current Investigational New Drug (IND) application and the planned filing of a new IND in non-malignant hematology by the end of 2025 are highlighted as potential additional growth drivers.
The revised financial model from Stifel reflects modest increases in expected operating expenses for fiscal year 2025 and beyond. Despite the recent underperformance of Nurix shares relative to the broader biotech sector, Stifel's analysts believe in the company's potential to recover and succeed based on its promising product pipeline and strategic developments. InvestingPro's Fair Value analysis suggests the stock is currently undervalued, while analysts maintain an optimistic outlook with price targets ranging from $16 to $41. For deeper insights into Nurix's valuation and financial health, access the exclusive Pro Research Report, available to InvestingPro subscribers, which provides comprehensive analysis of this and 1,400+ other US stocks.
In other recent news, Nurix Therapeutics has reported significant developments that have captured the attention of analysts and investors alike. The company disclosed its first-quarter financial results, highlighting progress with its leading drug candidate, bexobrutideg, which is moving toward pivotal trials for chronic lymphocytic leukemia (CLL) in 2025. Additionally, the FDA granted Orphan Drug Designation to bexobrutideg for treating Waldenstrom macroglobulinemia. In collaboration with Sanofi (NASDAQ:SNY), Nurix has achieved milestones and extended a license for a program targeting a transcription factor linked to autoimmune diseases.
Analyst firms have responded to these updates with mixed ratings. Stephens adjusted its price target for Nurix to $30, maintaining an Overweight rating, while Stifel reiterated a Buy rating with a $35 target. BTIG maintained a Neutral rating with a $35 target, noting the importance of upcoming updates on the NX-5948 program. H.C. Wainwright reaffirmed a Buy rating, setting a target of $36, emphasizing the strategic collaboration with Sanofi. The partnership with Sanofi has already resulted in $105 million in payments to Nurix, with the potential for up to $465 million more in milestones and royalties. These recent developments underscore Nurix's ongoing efforts in drug discovery, particularly in autoimmune disease treatment.
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