Stifel maintains Buy rating on Nurix stock, sees $4.5B peak sales potential

Investing.com - Stifel reiterated its Buy rating and $35.00 price target on Nurix (NASDAQ:NRIX), currently trading at $13.18, as the firm projects potential peak sales exceeding $4.5 billion for the company’s lead drug candidate. According to InvestingPro data, analyst targets range from $16 to $41, with the stock currently showing signs of being slightly undervalued.

Stifel expects Nurix management to announce registrational development plans for bexobrutideg in the second half of 2025, likely before the American Society of Hematology (ASH) annual meeting. InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 6.26, though it’s currently burning through cash while advancing its pipeline.

The research firm has refined its revenue model for bexobrutideg in second-line and third-line chronic lymphocytic leukemia (CLL) treatment, with approximately 75% of projected peak sales coming from the U.S. market and about 65% from second-line treatment.

Stifel’s revenue projections are based on what it describes as "modest peak share gain assumptions" of 15-20% in second-line treatment and 25-30% in third-line treatment, with median treatment duration assumptions conservatively aligned with previously approved BTK inhibitors.

The firm has removed CBL-Bi estimates from its model while noting long-term optionality, and continues to exclude potential revenue from zelebrudomide and IRAK4/STAT6-derived sales or royalties, which it suggests could collectively exceed the projected peak sales for bexobrutideg. With a market cap of $1 billion and holding more cash than debt, Nurix shows financial flexibility for its development programs. Discover more insights and 8 additional key ProTips with a subscription to InvestingPro.

In other recent news, Nurix Therapeutics reported financial results for its fiscal second quarter, surpassing analyst expectations. The company posted a quarterly net loss of $43.5 million, or -$0.52 per share, beating the expected -$0.74 per share. Revenue soared to $44.1 million, significantly higher than the projected $17.5 million, driven by $30 million in license revenue from Sanofi (NASDAQ:SNY) and a $5 million milestone from Gilead (NASDAQ:GILD). In terms of analyst activity, UBS adjusted its price target for Nurix to $26 from $30, maintaining a Buy rating due to increased operational expenses. Meanwhile, Goldman Sachs initiated coverage with a Buy rating and a $182 price target, citing enthusiasm for the Crenessity drug launch. Stifel reiterated its Buy rating, projecting peak sales of $4.5 billion for Nurix’s lead candidate, bexobrutideg, in the U.S. and Europe. Nurix’s recent updates include progress on pivotal trials for bexobrutideg and other clinical developments expected in the coming years. The company ended the quarter with $485.8 million in cash and marketable securities, highlighting its financial stability.

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