Piper Sandler lowers NextCure stock price target to $15 after reverse split

Published 15/07/2025, 14:50
Piper Sandler lowers NextCure stock price target to $15 after reverse split

Investing.com - Piper Sandler has lowered its price target on NextCure Inc . (NASDAQ:NXTC) to $15.00 from $36.00 while maintaining an Overweight rating on the stock. The company’s shares, which have declined over 75% in the past year, are currently trading below their InvestingPro Fair Value, suggesting potential upside opportunity.

The adjustment follows NextCure’s 12-for-1 reverse stock split that became effective July 14. After the split, NextCure has approximately 2.338 million shares outstanding and a market capitalization of $11.5 million. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 10.26 and holds more cash than debt on its balance sheet.

NextCure is currently conducting a Phase I study of its B7-H4 ADC LNCB74 in breast, ovarian, and endometrial cancers, with data expected in the first half of 2026. The company also recently partnered with Simcere Zaiming for SIM0505, a CDH6-targeting ADC for solid tumors, in a deal worth up to $745 million in upfront and milestone payments, plus tiered royalties for territories outside China.

NextCure plans to initiate a Phase I study of SIM0505 in the United States this quarter, with initial data anticipated in the first half of 2026. The company is also seeking partners for its other assets.

As of the first quarter of 2025, NextCure reported cash holdings of $55.9 million, which is expected to fund operations into the second half of 2026. Piper Sandler’s price target reduction reflects both the reverse stock split and a rolled-forward discount rate to mid-2026.

In other recent news, NextCure, Inc. has initiated a one-for-twelve reverse stock split of its common stock, which has been approved by its board of directors and shareholders. This reverse stock split, effective as of July 14, 2025, results in every twelve shares of issued and outstanding common stock being automatically combined into one share. Fractional shares will not be issued; instead, shareholders will receive a cash payment for any fractions based on the closing price before the split. The reverse stock split also adjusts the number of shares available under the company’s equity plans and the exercise prices for stock options. In addition, NextCure’s shareholders have approved the election of three Class III directors, the ratification of Ernst & Young LLP as the company’s independent auditor, and the executive compensation plan. The reverse stock split proposal was supported by a significant majority of shareholders. Furthermore, shares of NextCure’s common stock will continue trading on the Nasdaq Global Select Market under the existing ticker symbol "NXTC" on a split-adjusted basis.

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