On Friday, Stifel adjusted its outlook for Nurix Therapeutics Inc. (NASDAQ:NRIX) shares, increasing the price target to $30 from the previous $27, while maintaining a 'Buy' rating on the stock. The revision follows the company's second-quarter fiscal year 2024 earnings report and corporate update, which was aligned with expectations.
Stifel's assessment points to upcoming data as a potential boost for Nurix. The firm anticipates that the forthcoming year-end calendar year 2024 disclosure of dose-escalation data for NX-5948, a treatment for Chronic Lymphocytic Leukemia (CLL) and Non-Hodgkin Lymphoma (NHL), could serve as a significant catalyst. This data is expected to complement existing efficacy results and what is believed to be a leading safety profile in its class.
The analyst firm also highlighted the potential impact of data from the Phase 1 NX-1607 trial, which is considered a higher-risk but possibly higher-reward event. This data, which is yet to be factored into Nurix's current share valuation, is anticipated to be disclosed by the end of calendar year 2024.
Furthermore, Stifel has taken note of Nurix's strengthened financial position, with the company reporting over $450 million in cash at the end of the second quarter of fiscal year 2024. This capital is expected to enable the management to launch registrational trials for NX-5948 in both third-line and first/second-line CLL treatments in calendar year 2025.
The firm's updated price target incorporates a slightly increased probability of success (POS) for the BTK degrading assets, now at 35%, up from the previous 25%. This adjustment is somewhat balanced by revised assumptions regarding financing. Overall, Stifel's long-term estimates for Nurix remain largely unchanged despite the updated target price.
In other recent news, Nurix Therapeutics reported significant progress in its clinical programs during its second-quarter earnings announcement. The company highlighted the advancement of its NX-5948 therapy, which targets B-cell malignancies such as chronic lymphocytic leukemia (CLL) and non-Hodgkin lymphoma (NHL). The firm also noted that the company is preparing for further data releases in the second half of 2024, including updates from both the CLL and NHL patient cohorts.
Piper Sandler reaffirmed its positive stance on Nurix, maintaining an Overweight rating and a $35.00 price target for the shares. This followed Nurix's clinical update at the European Hematology Association (EHA) meeting. On the other hand, Needham reduced its price target on the company's shares to $29.00 from the previous $31.00, while maintaining a Buy rating. RBC Capital increased its price target for Nurix to $27.00, maintaining an Outperform rating.
H.C. Wainwright also raised its 12-month price target on Nurix shares to $26, maintaining a Buy rating, following promising results from the NX-5948 Phase Ia trial. Lastly, 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.
InvestingPro Insights
Following Stifel's optimistic outlook on Nurix Therapeutics Inc., InvestingPro data and tips provide additional context for investors considering the company's prospects. Nurix holds a market capitalization of approximately $1.5 billion USD, underscoring its significant presence in the biotech sector. Despite not being profitable over the last twelve months, the company has demonstrated impressive revenue growth, with a 94.02% increase in the last twelve months as of Q1 2024. This robust growth trajectory is further reflected in a 30.74% quarterly revenue growth in Q1 2024.
InvestingPro Tips highlight that Nurix has more cash than debt on its balance sheet, an indicator of financial stability, and that analysts have recently revised their earnings upwards for the upcoming period, suggesting potential confidence in the company's future performance. Moreover, the stock has experienced a strong return over the last week, month, three months, and year, with returns of 13.15%, 33.52%, 31.6%, and 120.74% respectively. These returns indicate a bullish trend for investors who are riding the wave of Nurix's recent performance.
For investors seeking deeper insights and additional tips, there are 15 InvestingPro Tips available, which can be accessed by visiting https://www.investing.com/pro/NRIX. To enhance your investment analysis, consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, offering a comprehensive suite of tools and data to inform your investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.