Needham cuts Nurix Therapeutics shares target amid financial adjustments

Published 12/07/2024, 12:48
Needham cuts Nurix Therapeutics shares target amid financial adjustments

Friday - Needham has adjusted its price target on Nurix Therapeutics Inc. (NASDAQ:NRIX) shares, reducing it to $29.00 from the previous $31.00, while maintaining a Buy rating on the stock.

The adjustment follows Nurix's presentation of a clinical update at the European Hematology Association (EHA), highlighting the effectiveness and safety of NX-5948 in treating chronic lymphocytic leukemia (CLL) patients who have undergone several prior treatments.

The company has indicated that additional results for NX-5948 in CLL and non-Hodgkin lymphoma (NHL) are anticipated in the second half of 2024, likely to be presented at the American Society of Hematology (ASH) conference. Nurix also plans to initiate pivotal studies in 2025, starting with third-line or higher CLL treatments.

Furthermore, after a partial clinical hold was lifted, which allowed the Food and Drug Administration (FDA) time to review Nurix's new CMC process, enrollment is set to resume in the second half of 2024 for Phase I trials of NX-2127 in aggressive B-cell lymphoma (BCL).

The company is also progressing with a Phase I study of NX-1607, testing the drug both alone and in combination with paclitaxel for the treatment of various cancers, with initial results expected in the latter half of 2024. Nurix concluded the second quarter of 2024 with a solid cash position of $453 million, bolstered by approximately $189 million from a financing round in April.

Needham's revised price target reflects a recalibration to account for the dilution following the April financing. Despite this adjustment, the firm's outlook on Nurix remains positive, as evidenced by the continued Buy rating.

In other recent news, Nurix Therapeutics has experienced a series of positive developments. After announcing promising results from the NX-5948 Phase Ia trial, Nurix saw its share target raised by both RBC Capital and H.C. Wainwright.

RBC Capital increased its target to $27.00 from $26.00, while H.C. Wainwright raised its 12-month price target from $19 to $26. Both firms maintained favorable ratings on the stock, with RBC Capital retaining an Outperform rating and H.C. Wainwright maintaining a Buy rating.

These adjustments followed the release of Nurix's second-quarter 2024 report, which highlighted upcoming catalysts, including additional clinical data for NX-5948, the company's investigational drug for chronic lymphocytic leukemia and non-Hodgkin lymphoma. Furthermore, Piper Sandler also maintained an Overweight rating on Nurix shares, highlighting the potential of NX-5948.

In addition to these financial adjustments, Nurix Therapeutics announced key leadership appointments, including Paula G. O’Connor, M.D., as Chief Medical Officer, and Pasit Phiasivongsa, Ph.D., as Chief Technical Officer.

Julia P. Gregory was elected the new board chair, succeeding Dr. David L. Lacey, who continues to serve as a board member. These are the recent developments in Nurix Therapeutics, a company that continues to make strides in the biopharmaceutical industry.

InvestingPro Insights

As Nurix Therapeutics Inc. (NASDAQ:NRIX) navigates its clinical trials and development milestones, investors are keeping a close eye on the company's financial health and market performance. According to InvestingPro data, Nurix has a market capitalization of $1.42 billion and has experienced a significant revenue growth, up 94.02% over the last twelve months as of Q1 2024. This growth is reflected in the quarterly revenue increase of 30.74% in Q1 2024.

InvestingPro Tips suggest that Nurix holds more cash than debt, which can be a positive sign of financial stability. Additionally, the stock has shown a strong return over the last month with a 33.52% price total return, which may interest investors looking for momentum in their portfolio. However, it's worth noting that analysts do not anticipate the company will be profitable this year, and the stock has been trading at a high Price/Book multiple of 8.4.

For investors seeking more in-depth analysis, there are additional InvestingPro Tips available, including insights into earnings revisions by analysts and the stock's volatility. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, and unlock the full potential of InvestingPro's expert analysis.

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