Piper Sandler maintains Overweight on NextCure with PT down to $15.

Piper Sandler maintains Overweight on NextCure with PT down to $15.

Piper Sandler has lowered its price target on NextCure Inc. (NASDAQ:NXTC) to $15.00 from $36.00, while maintaining an Overweight rating on the stock. The adjustment follows NextCure’s 12-for-1 reverse stock split that became effective July 14. After the split, NextCure has approximately 2.338 million shares outstanding and a market capitalization of $11.5 million [2].

The reverse stock split is part of NextCure's ongoing efforts to improve its stock's liquidity and marketability. The company's shares have declined over 75% in the past year, trading below their InvestingPro Fair Value, suggesting potential upside opportunity [2]. Despite the decline, NextCure maintains a strong liquidity position with a current ratio of 10.26 and holds more cash than debt on its balance sheet [2].

NextCure is currently conducting a Phase I study of its B7-H4 ADC LNCB74 in breast, ovarian, and endometrial cancers, with data expected in the first half of 2026. The company also recently partnered with Simcere Zaiming for SIM0505, a CDH6-targeting ADC for solid tumors, in a deal worth up to $745 million in upfront and milestone payments, plus tiered royalties for territories outside China [2].

NextCure plans to initiate a Phase I study of SIM0505 in the United States this quarter, with initial data anticipated in the first half of 2026. The company is also seeking partners for its other assets. As of the first quarter of 2025, NextCure reported cash holdings of $55.9 million, which is expected to fund operations into the second half of 2026 [2].

Piper Sandler’s price target reduction reflects both the reverse stock split and a rolled-forward discount rate to mid-2026. The company's recent governance and strategic planning efforts, including the election of new directors and the ratification of an independent auditor, also contribute to the investment thesis [1].

References:
[1] https://www.investing.com/news/sec-filings/nextcure-announces-1for12-reverse-stock-split-effective-july-14-93CH-4130194
[2] https://www.investing.com/news/analyst-ratings/piper-sandler-lowers-nextcure-stock-price-target-to-15-after-reverse-split-93CH-4136029