On Friday, B.Riley made a significant adjustment to Bicycle Therapeutics' (NASDAQ:BCYC) price target, bringing it down from $28.00 to $17.00, while maintaining a Neutral rating on the stock. The firm's analyst pointed out that shares of Bicycle Therapeutics plummeted approximately 35% during the day to around $13 per share, which is close to the company's cash value.
According to InvestingPro data, BCYC holds more cash than debt on its balance sheet and maintains a healthy current ratio of 17.13, indicating strong liquidity position.
The downgrade in price target followed the release of clinical data for zelenectide pevedotin, which did not meet the expectations set by the analyst. The data presented suggested that the combination of zelenectide pevedotin and pembro as a first-line treatment for muscle-invasive urothelial carcinoma (mUC) might be less effective than the current standard, Padcev plus pembro, particularly due to unconfirmed responses.
Despite recent challenges, InvestingPro analysis shows the company achieved impressive revenue growth of 48.6% in the last twelve months, though analysts don't expect profitability this year.
Additionally, a separate post-hoc analysis for triple-negative breast cancer (TNBC) and non-small cell lung cancer (NSCLC) failed to excite investors. This analysis targeted patients with nectin-4 gene amplification or polysomy, but it did not generate the anticipated level of enthusiasm. The B.Riley analyst noted that post-hoc datasets are often viewed as statistically unreliable and prone to data mining, with the potential for different results in prospective studies.
The analyst's stance remains Neutral on the stock. InvestingPro data suggests the stock is currently undervalued, with analyst targets ranging from $25 to $55, significantly above current levels. Subscribers can access the comprehensive Pro Research Report for deeper insights into BCYC's valuation and growth prospects.
In other recent news, Bicycle Therapeutics has retained its Buy rating and $38.00 stock price target by Needham, while Leerink Partners raised the company's price target to $32.00, maintaining an Outperform rating. This follows the anticipation of data for Zelenectide Pevedotin's, set to be presented at the San Antonio Breast Cancer Symposium. The data is expected to show promising early results for the monotherapy in patients with triple-negative breast cancer.
In addition, H.C. Wainwright maintained a Buy rating and a $55.00 price target on shares of Bicycle Therapeutics, following the release of promising imaging data for the company's lead internal candidate. The company has secured approximately $555 million through PIPE financing, extending its financial runway into the second half of 2027.
Oppenheimer and TD (TSX:TD) Cowen maintained their Outperform and Buy ratings respectively, emphasizing potential advancements in the BRC platform. However, B.Riley downgraded the company's stock from Buy to Neutral due to potential clinical trial execution risks and competitive pressures.
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