Nurix shares hold Buy rating with $36 target from Truist Securities

Tuesday, Truist Securities maintained a Buy rating on shares of Nurix Therapeutics (NASDAQ:NRIX), with a price target of $36.00. The firm's focus is on Nurix's progress in the field of protein degradation, particularly its leading drug NX-5948, which targets BTK degradation. Nurix has previously released data on NX-5948 for relapsed/refractory chronic lymphocytic leukemia (r/r CLL).

The anticipation is building for a data-rich fourth quarter of 2024, as further results on NX-5948, including initial efficacy at a 600 mg dose for CLL, are expected. Additionally, preliminary data on the iNHL subgroup is set to provide insights into potential expansion opportunities for the drug. The company is also preparing for an update at an event around the American Society of Hematology (ASH) meeting, with details yet to be disclosed.

Truist Securities highlighted a recent intellectual property issue faced by one of Nurix's key competitors, BeiGene (NASDAQ:BGNE), which received a non-recommendation (NR) rating, due to a snag involving AbbVie (NYSE:ABBV), which holds a Buy rating. This development could have implications for the competitive landscape in which Nurix operates.

While the CLL program remains a primary focus for Nurix in the hematology/oncology field, the company is also advancing its efforts in inflammation and immunology (I&I). Truist Securities is awaiting further updates on the pre-IND (Investigational New Drug) work being completed for the I&I pipeline.

The firm reiterates its Buy rating on Nurix, underscoring the potential growth opportunities ahead for the company's innovative treatments.

In other recent news, Nurix Therapeutics has received considerable attention from multiple analyst firms following its robust earnings report and promising clinical updates. Baird continued to cover Nurix with an Outperform rating, highlighting the potential of Nurix's BTK degrader '5948 in the treatment of Chronic Lymphocytic Leukemia (CLL). Similarly, Oppenheimer maintained an Outperform rating, emphasizing the potential of the drug candidate NX-5948 beyond oncology due to its high potency and ability to penetrate skin and central nervous system tissue.

Truist Securities initiated coverage on Nurix with a Buy rating, underlining the company's leadership in the targeted protein degradation market and its promising lead drugs. The firm also projected unadjusted and adjusted peak sales for Nurix at $3.45 billion and $1.11 billion, respectively. Stifel raised its price target for Nurix to $30, maintaining a 'Buy' rating, following Nurix's second-quarter fiscal year 2024 earnings report.

Nurix also announced key leadership appointments, including Paula G. O’Connor, M.D., as Chief Medical Officer, and Pasit Phiasivongsa, Ph.D., as Chief Technical Officer.

InvestingPro Insights

To complement Truist Securities' bullish outlook on Nurix Therapeutics (NASDAQ:NRIX), recent data from InvestingPro offers additional context for investors. Despite the company's innovative pipeline in protein degradation, InvestingPro Tips highlight that Nurix is not currently profitable and analysts do not anticipate profitability this year. This aligns with the company's focus on research and development in its pre-revenue stage.

However, the market appears optimistic about Nurix's potential, as evidenced by the stock's significant price appreciation. InvestingPro data shows a remarkable 185.88% price total return over the past year, with a 54.12% increase in the last six months alone. This surge in stock price reflects investor enthusiasm for Nurix's drug development progress, particularly with NX-5948.

Financially, Nurix maintains a strong liquidity position. An InvestingPro Tip notes that the company holds more cash than debt on its balance sheet, which is crucial for funding ongoing clinical trials and research initiatives. This financial stability supports Truist Securities' positive outlook on the company's ability to advance its pipeline.

For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Nurix Therapeutics, providing a deeper understanding of the company's financial health and market position.

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