Stifel maintains Buy on Nurix stock, price target at $35

On Wednesday, Stifel analysts reiterated their Buy rating on Nurix Therapeutics Inc . (NASDAQ:NRIX), maintaining a price target of $35.00. According to InvestingPro data, the stock currently trades at $9.26, with analyst targets ranging from $17 to $41, suggesting significant potential upside. The overall analyst consensus remains bullish at 1.56 (on a scale where 1 is Strong Buy). The firm's analysts highlighted the company's resilience despite the year-to-date decline in Nurix shares, which has exceeded the performance of the XBI biotech index by more than double, with Nurix shares dropping 53% compared to the XBI's 24%. InvestingPro data shows the stock has fallen nearly 19% in the past week alone and is currently trading significantly below its Fair Value, making it one of the potentially undervalued biotech stocks. For deeper insights into Nurix's valuation and 12 additional ProTips, consider exploring the comprehensive Pro Research Report available on InvestingPro.

Stifel's confidence in Nurix is rooted in its lead asset, bexobrutideg (formerly known as NX-5948), which they believe has a straightforward path toward approval in the competitive chronic lymphocytic leukemia (CLL) market. The market has historically rewarded later entrants that have proven to be best-in-class, taking significant market share from established competitors.

The analysts anticipate that the release of further data on bexobrutideg, along with detailed plans for its registrational trials, will enhance the visibility of the drug's advancement. This, combined with ongoing progress in Nurix's early-stage pipeline, including expected updates for NX-2127 and NX-1607 in fiscal year 2025, is seen as a positive development.

Furthermore, Stifel pointed out additional potential growth from bexobrutideg in the autoimmune sector. The initiation of a warm autoimmune hemolytic anemia (wAIHA) cohort under the current Investigational New Drug (IND) application and the planned filing of a non-malignant hematology IND by the end of 2025 are considered potential tailwinds for the company.

The firm's updated model for Nurix incorporates slightly higher expected operating expenses for fiscal year 2025 and beyond. While InvestingPro data indicates the company is quickly burning through cash with an EBITDA of -$205.01M, it maintains a strong current ratio of 6.46 and holds more cash than debt on its balance sheet. Stifel's analysis underscores their belief in Nurix's strategic positioning and the anticipated milestones that could enhance the company's value proposition in the coming years.

In other recent news, Nurix Therapeutics has reported its fiscal first quarter 2025 earnings, leading BTIG to maintain a Neutral rating with a $35 price target. H.C. Wainwright, however, reaffirmed a Buy rating with a $36 price target, highlighting a new licensing agreement with Sanofi (NASDAQ:SNY). This agreement, part of a collaboration that began in 2019, has already brought Nurix $105 million, including a recent $15 million extension fee. The partnership focuses on a novel autoimmune disease program, separate from Nurix's STAT6 degrader initiative.

Additionally, Nurix has received Orphan Drug Designation from the FDA for bexobrutideg, intended for treating Waldenström macroglobulinemia. This designation provides benefits such as tax credits and market exclusivity upon approval. Nurix is also advancing its NX-5948 program, with plans to file an IND application for autoimmune cytopenias. Furthermore, the company has granted stock options to new hires as part of its 2024 Equity Inducement Plan, aiming to attract talent for its drug development efforts. These developments reflect Nurix's ongoing efforts in drug discovery and innovation in the biopharmaceutical sector.

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