Monday, 20 May 2024


Curis shares target cut by $9, retains buy rating By

Amended & Restated Technical Report to Support Kharmagtai Preliminary Economic Assessment By

On Wednesday, Jones Trading adjusted its outlook on Curis (NASDAQ:CRIS), a biotechnology company, by reducing its price target to $18.00 from the previous $27.00. Despite the decrease, the firm maintained its Buy rating on the stock.

The revision reflects a new valuation based on a sum-of-the-parts (SOTP) net present value (NPV) and price-to-earnings (PE) analysis. This analysis suggests an approximate $250 million probability-adjusted peak sales for the company’s drugs in 2033, with a 14% probability of success (POS) and a 12% discount rate applied.

The key components contributing to the price target in their NPV model include CA-4948, Curis’s drug for relapsed/refractory acute myeloid leukemia (r/r AML), valued at $1 per share. Additionally, the treatment for relapsed/refractory primary central nervous system lymphoma (r/r PCNSL) adds $0.35 per share, with cash holdings and technology contributing $14 per share to the valuation.

The analyst highlighted several risks that could affect Curis’s future performance and valuation. These risks encompass potential clinical trial failures, the drug’s efficacy being limited to certain patient types, and challenges in expanding the drug development pipeline. Furthermore, there are concerns about safety at high dose levels, the necessity to demonstrate survival benefits, the ability to secure an accelerated approval path for their drugs, and the pressure from competitive products in the market.

Curis’s stock price target reflects a complex landscape of drug development, where success hinges on navigating clinical, regulatory, and competitive challenges.

InvestingPro Insights

Following the recent outlook adjustment by Jones Trading on Curis (NASDAQ:CRIS), it’s worth considering additional insights that could inform investors’ perspectives. With a current market capitalization of approximately $92.48 million, Curis exhibits certain financial characteristics that are noteworthy. The company’s Price / Book ratio, standing at 9.77 as of the last twelve months up to Q1 2024, indicates a high valuation relative to the company’s book value. Despite facing challenges, Curis’s stock has experienced a significant 176.72% price uptick over the last six months, showcasing a strong return in the short term.

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On the operational front, analysts have revised their earnings upwards for the upcoming period, reflecting a degree of optimism…

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