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TICKERS: NCNA

Analyst's Target Price for Biotech Massively Higher Than Current Price
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Oppenheimer & Co. recently put out a report that gave NuCana Plc. (NCNA:NASDAQ) a target price of US$150. The stock is currently trading at US$2.98. Read on to see why the analyst has given the company such a massive target price.

Oppenheimer & Co. analyst Dr. Leland Gershell, in a research report published on July 22, 2024, provided an update on NuCana Plc. (NCNA:NASDAQ) ahead of the company's upcoming first look at its randomized Phase 2 trial in metastatic colorectal cancer. The analyst maintained an Outperform rating and a 12-18 month price target of US$150.00 on the stock.

Gershell anticipates the data readout to occur in late August or September, stating, "We look forward to the first look from NCNA's randomized Phase 2 trial in metastatic colorectal cancer . . . as it could show meaningful clinical differentiation for NUC-3373 vs. 5-fluorouracil (5-FU) as part of the standard-of-care regimen (chemo+Avastin) for second-line disease."

The analyst believes that NUC-3373 has the potential to show better safety and tolerability compared to 5-FU, which "would support prospects to displace 5-FU in this and other oncology settings (~500K North Americans treated annually)." Gershell added, "An efficacy advantage on progression-free survival (PFS) would be a home run."

Regarding expectations for the NuTide:323 trial, Gershell noted, "We should see ~six months PFS for the FOLFIRI+bev control per historical data. From our review of prior '3373 results, we could see a few months' incremental PFS in the active arm, with the prospect of less neutropenia—a clear win over 5-FU."

The analyst concluded, "With shares seeming to reflect little credit for any future success potential, we encourage investors to take a close look heading into this readout, which we believe could ignite investor interest in NCNA."

NuCana's strategic focus includes advancing its pipeline of next-generation chemotherapeutics, with NUC-3373 and NUC-7738 as key candidates. The company is also expecting data presentations on NUC-7738 at the upcoming ESMO conference.

Gershell highlighted NuCana's financial position, stating, "Most recently-reported cash resources (as of 3/31) were £12.9M, which the company expects to fund its business plan into 1Q25."

Oppenheimer's valuation methodology for NuCana is based on a risk-adjusted revenue multiples analysis. "We project peak un-risk-adjusted US NUC-3373 sales of US$504M, to which we apply a 6x multiple, in line with 5-8x industry average. We apply a 20% discount rate to future revenue, and assign 65% probability of success," Gershell explained.

With an Outperform rating and a price target of US$150.00, representing a potential return of approximately 4,930% from the price at the time of the report of US$2.98, Oppenheimer sees significant upside potential for NuCana.

The analyst concluded, "With shares seeming to reflect little credit for any future success potential, we encourage investors to take a close look heading into this readout, which we believe could ignite investor interest in NCNA."


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  1. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 
  2. This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

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Disclosures for Oppenheimer & Co., NuCana Plc., July 22, 2024

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