On Monday, Mizuho analysts adjusted the price target for Immunocore Holdings (NASDAQ:IMCR) to $33.00, down from the previous $38.00, while maintaining a Neutral rating on the stock. The revision comes as the stock trades near its 52-week low of $27.19, having declined 57% over the past year. According to InvestingPro analysis, the stock appears slightly undervalued at current levels. The revision is based on an updated model which now includes the company’s quarterly estimates for 2025 and a modification to the analysts’ Discounted Cash Flow (DCF) assumptions. These changes reflect increased risk associated with biotech investments.
The analysts noted that despite the adjustment in the price target, their overall thesis on Immunocore Holdings remains the same. With a market capitalization of $1.37 billion and a robust current ratio of 4.38, Immunocore maintains strong financial health. The company is recognized as a leader in the field of T-cell receptor (TCR) based therapeutics for cancer treatment and potentially for other diseases. The company is currently conducting three major Phase 3 clinical trials for its two most advanced pipeline assets, Kimmtrak and brenetafusp. InvestingPro subscribers have access to 8 additional key insights about IMCR’s financial position and growth prospects.
The analysts expressed enthusiasm about the potential outcomes of these trials. Despite posting impressive revenue growth of 24.37% in the last twelve months, they also pointed out the lack of significant clinical news expected over the next 12 to 15 months. This anticipated quiet period makes it challenging for the analysts to envision the company’s shares outperforming in the near term. Consequently, they have decided to maintain a stance of neutrality regarding Immunocore’s stock. For deeper insights into IMCR’s financial health and future prospects, investors can access the comprehensive Pro Research Report available exclusively on InvestingPro.
Immunocore previously reported its fourth-quarter results for 2024, which were initially discussed by the analysts in a separate report. The latest adjustments to the price target and the maintained rating reflect the analysts’ current view given the new estimates and the adjusted risk profile for the sector. Despite the reduced price target, the analysts’ position on Immunocore Holdings remains unchanged, as they continue to monitor the company’s progress with its clinical trials and development of its TCR-based therapeutic candidates.
In other recent news, Immunocore Holdings reported its fourth-quarter 2024 earnings, revealing a notable miss on earnings per share (EPS) compared to analyst expectations. The company posted an EPS of -0.47, falling short of the forecasted -0.24, while revenue slightly missed estimates at $84.05 million against the anticipated $84.53 million. Despite this, Immunocore demonstrated robust annual growth, with total revenues reaching $310 million, marking a 30% increase year-over-year. In addition to its earnings report, Immunocore has made significant strides in its HIV research, presenting promising data from the Phase 1/2 STRIVE trial of IMC-M113V at a recent conference. The trial showed that the drug was well-tolerated and demonstrated a dose-dependent reduction in the HIV active reservoir. Analyst firms, including H.C. Wainwright and BTIG, have maintained their Buy ratings on Immunocore, with price targets of $100 and $91, respectively, reflecting confidence in the company’s innovative approach and potential in TCR-based therapies. Furthermore, Immunocore amended the indenture for its convertible senior notes and filed a prospectus for the resale of up to $150 million of these notes. These developments indicate Immunocore’s ongoing efforts to advance its pipeline and solidify its position in the biotechnology sector.
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