On Thursday, March 27, 2025, Stifel analysts adjusted their outlook on Nkarta Inc. (NASDAQ:NKTX), reducing the price target to $14.00 from the previous $15.00, while continuing to endorse the stock with a Buy rating. The stock, currently trading at $1.37, has experienced significant pressure, falling nearly 88% over the past year and trading near its 52-week low of $1.31. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics, with 14 additional real-time insights available to subscribers.
The firm’s analysts pointed to the anticipated release of preliminary proof of concept data from Phase 1 trials of NKX019 as the next significant event to potentially influence the company’s share value. These trials, part of the Ntrust-1 study, are evaluating NKX019’s efficacy in treating patients with lymphoma (LN), systemic sclerosis (SSc), myositis, and ANCA-associated vasculitis (AAV).
The analysts acknowledged the challenges faced by Nkarta and its peers in the early-stage cell therapy sector, particularly regarding patient enrollment rates and the perceived high bars for efficacy and safety. Despite these challenges, they believe Nkarta stands apart due to the logistical and safety benefits of its NKX019 therapy, which shares similarities with standard treatments commonly prescribed by rheumatologists and immunologists.
InvestingPro data shows the company maintains strong liquidity with a current ratio of 12.91 and holds more cash than debt on its balance sheet, though it’s currently burning through cash rapidly. Stifel highlighted the company’s strategic moves, including the harmonization of NKX019 dosing across all four ongoing trials (Ntrust-1/2 and two Investigator-Sponsored Trials), which they anticipate will enhance the comparability of results between studies.
Additionally, they noted Nkarta’s recent restructuring and workforce reduction as positive steps that extend the company’s cash runway into fiscal year 2029, providing the firm with strategic flexibility. The updated model from Stifel incorporates extended timelines for NKX019’s approval and market launch, now expected in fiscal year 2030. The analysts have mostly offset these delays with projected reductions in operating expenses from fiscal year 2025 onwards.
The forthcoming data from the Ntrust-1 trials, expected in the second half of 2025, remains a key milestone for Nkarta and its investors. With analyst targets ranging from $8 to $20 and an overall consensus recommendation of 1.25 (Strong Buy), detailed analysis and comprehensive insights are available in the Pro Research Report on InvestingPro, part of its coverage of over 1,400 US equities.
In other recent news, Nkarta Inc. announced its fourth-quarter and full-year 2024 financial results, alongside a significant restructuring plan. This restructuring involves a 34% workforce reduction, impacting approximately 53 positions, and a shift in focus from oncology to autoimmune disease programs. The company aims to streamline its path toward clinical milestones for its CD19-targeted allogeneic CAR-NK cell therapy, NKX019, with data expected in the second half of 2025.
The restructuring also includes changes in the executive team, with Alyssa Levin, Chief Financial and Business Officer, stepping down at the end of March 2025. Analyst firm H.C. Wainwright reaffirmed its Buy rating for Nkarta, maintaining an $18 price target. Meanwhile, Stifel adjusted its price target for Nkarta to $14 from $15, while also maintaining a Buy rating. Stifel’s revision is based on upcoming data from phase 1 trials, which are anticipated to be crucial for the company in late 2025.
On the same day, Stifel analysts increased the price target for Bicara Therapeutics Inc. (NASDAQ:BCAX) shares to $48 from the previous target of $47, while reiterating a Buy rating on the stock. Currently trading at $12.94, the stock has significant upside potential according to analyst consensus, with targets ranging from $31 to $47. The revised price target comes as Stifel analysts express continued confidence in the company’s valuation ahead of anticipated data releases in the second quarter of 2025.
Bicara Therapeutics is preparing to unveil key data for its drug candidate ficerafusp alfa. With a strong financial health score of 2.73 (rated as GOOD by InvestingPro) and a current ratio of 36.01, the company appears well-positioned to support its clinical programs. The first set of data is expected from monotherapy dose-expansion studies in second-line cutaneous squamous cell carcinoma (cSCC) at the American Association for Cancer Research (AACR) meeting scheduled for April 28.
Additionally, updated Phase 1b results of ficerafusp alfa in combination with pembrolizumab for first-line recurrent/metastatic squamous cell carcinoma of the head and neck (R/M SCCHN) will be presented at the American Society of Clinical Oncology (ASCO) conference, which takes place from May 30 to June 3, 2025.
The analysts highlight that the forthcoming data is anticipated to improve visibility into the single-agent activity of ficerafusp alfa and address any remaining skepticism. Furthermore, the updated data from the combination study with pembrolizumab is expected to provide more mature efficacy metrics that will be instrumental in assessing the long-term success prospects of the drug and its potential to stand out in a competitive market.
Stifel analysts also point out that recent comments from Bicara’s management regarding the not-yet-reached median duration of response (mDOR) and median overall survival (mOS) at the time of the ASCO abstract submission—which represents approximately 20 months of follow-up—significantly reduce the downside risk leading into the ASCO conference. The analysts believe that the durability and depth of response observed with ficerafusp could set a high bar for efficacy compared to competitor drugs.
Despite the slight increase in the price target, the analysts’ financial model for Bicara remains largely unchanged. While the stock has faced challenges, declining nearly 49% over the past six months, their continued endorsement of a Buy rating reflects their optimism about the company’s prospects and the potential impact of the upcoming clinical data on the stock’s valuation.
In other recent news, Bicara Therapeutics Inc. reported positive results from its Phase 1/1b clinical trial, which evaluated the combination of ficerafusp alfa and pembrolizumab in patients with squamous cell carcinoma of the anal canal (SCAC). The trial showed a confirmed overall response rate of 25%, with partial and complete responses observed, and a median progression-free survival of 2.9 months.
Additionally, H.C. Wainwright raised its price target for Bicara to $45, maintaining a Buy rating, following the presentation of these results at the ASCO GI conference. The firm noted a higher objective response rate in patients with liver metastasis, highlighting the potential of ficerafusp alfa as a significant treatment option. Stifel also maintained a Buy rating with a $47 target, citing encouraging safety and efficacy data from the same trial. Cantor Fitzgerald reiterated an Overweight rating, emphasizing the promising market prospects of ficerafusp in treating head and neck cancer. These developments underscore the optimism surrounding Bicara Therapeutics’ ongoing clinical trials and their potential impact on future market performance.
