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

Investing.com - Stifel maintained its Buy rating and $35.00 price target on Nurix Therapeutics (NASDAQ:NRIX) in a research note published Thursday. The stock, currently trading at $13.18, appears undervalued according to InvestingPro analysis, with analyst targets ranging from $16 to $41.

The firm expects Nurix management to announce registrational development plans for its lead drug candidate bexobrutideg in the second half of 2025, likely before the American Society of Hematology (ASH) annual meeting. With a market capitalization of $1 billion and a strong current ratio of 6.26, InvestingPro data shows the company maintains solid financial flexibility for its development programs.

Stifel’s updated financial model projects peak U.S. and European sales exceeding $4.5 billion for bexobrutideg in second-line and later chronic lymphocytic leukemia (CLL) treatment, with approximately 75% of revenue coming from the U.S. market and 65% from second-line treatment.

These projections are based on what the firm describes as "modest peak share gain assumptions" of 15-20% in second-line plus settings and 25-30% in third-line plus settings, with treatment duration assumptions conservatively aligned with previously approved BTK inhibitors.

The firm has removed CBL-Bi estimates from its model while noting long-term potential, and continues to exclude potential revenue from zelebrudomide and IRAK4/STAT6-derived sales or royalties, which Stifel suggests "could collectively dwarf" their bexobrutideg peak sales estimate.

In other recent news, Nurix Therapeutics reported financial results for its fiscal second quarter, which ended on May 31, 2025, surpassing market expectations. The company posted a net loss of $43.5 million, or -$0.52 per share, beating analyst predictions of -$0.74 per share. Revenue rose sharply to $44.1 million, significantly exceeding the $17.5 million projected by analysts and increasing from $12.1 million in the same quarter the previous year. This revenue growth was primarily driven by $30 million in license revenue from Sanofi (NASDAQ:SNY) and a $5 million milestone payment from a collaboration with Gilead (NASDAQ:GILD). These strategic collaborations are central to Nurix’s ongoing development of its protein degradation platform. Research and development expenses increased to $78.1 million, reflecting intensified efforts in clinical trials. General and administrative expenses also rose to $14.3 million, attributed to higher personnel and consulting costs. Nurix concluded the quarter with $485.8 million in cash, cash equivalents, and marketable securities, noting additional payments received after the quarter’s end.

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