On Monday, H.C. Wainwright adjusted its price target for shares of Bicycle Therapeutics (NASDAQ:BCYC), a biopharmaceutical company, reducing it to $33.00 from the previous $55.00. The stock, currently trading at $13.81, has experienced a sharp 34% decline over the past week.
Despite the lower price target, the firm maintained its Buy rating on the company's shares. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics. The adjustment reflects a reassessment of Bicycle Therapeutics' drug development pipeline.
The firm's analyst noted the updated model takes into account the current status of the company's pipeline. While InvestingPro data shows the company is quickly burning through cash with weak gross profit margins, particular attention was given to the drug candidate zele, which is being developed for multiple uses.
The analyst cited the drug's favorable safety profile as a reason for increasing its expected market penetration for first-line (1L) and second-line or beyond (2L+) treatment of muscle-invasive urothelial carcinoma (mUC). The penetration rates were raised to 30% and 20%, respectively, up from the previously anticipated 15%.
Moreover, the analyst included metastatic triple-negative breast cancer (mTNBC) as a new indication in the valuation model, with expectations for zele to launch for this indication in the United States by 2030. However, non-small cell lung cancer (NSCLC) was excluded from the valuation as the potential launch in this tumor type is anticipated to occur towards the end of the projection period.
The revision of the price target also factors in adjustments to projected operational expenses for the year 2025 and beyond. The new price target of $33 is based on a per diluted share basis, reflecting the firm's latest expectations for Bicycle Therapeutics' financial performance and market potential.
With analyst targets ranging from $17 to $55, and 8 additional key insights available on InvestingPro, investors can access comprehensive analysis through the platform's detailed Pro Research Report.
In other recent news, Bicycle Therapeutics has been the focus of several analyst reviews and financial developments. Morgan Stanley (NYSE:MS) maintained its Equalweight rating on the company, emphasizing the clarity provided on the Phase 2/3 Duravelo-2 trial timing.
B.Riley, on the other hand, cut the company's price target from $28 to $17, maintaining a Neutral rating, following the release of clinical data for zelenectide pevedotin that fell short of expectations. However, the same firm acknowledged Bicycle Therapeutics' impressive revenue growth of 48.6% in the last twelve months.
Needham retained its Buy rating and $38.00 stock price target for Bicycle Therapeutics, anticipating promising early results for the monotherapy in patients with triple-negative breast cancer. Leerink Partners raised the company's price target to $32.00, maintaining an Outperform rating, following the company's third-quarter financial results and pipeline progress.
H.C. Wainwright also 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 Cowen maintained their Outperform and Buy ratings respectively, emphasizing potential advancements in the BRC platform. These are some of the recent developments surrounding Bicycle Therapeutics.
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