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Evaluating Nurix Therapeutics (NRIX) Valuation After Recent Analyst Upgrades And Renewed Optimism

Simply Wall St · 2d ago

Morgan Stanley’s upgrade of Nurix Therapeutics (NRIX) to Overweight, alongside higher optimism from other brokers and a consensus Outperform rating, has pushed this clinical stage biotech back onto many investors’ watchlists.

See our latest analysis for Nurix Therapeutics.

At a share price of $19.30, Nurix has seen a 3.60% 1 day share price return and a 97.75% 90 day share price return. The 1 year total shareholder return of 5.81% contrasts with a 65.52% total shareholder return over three years, suggesting that recent momentum has picked up again after a weaker longer term record.

If this kind of renewed interest in clinical stage biotech has your attention, it could be a good moment to look across other healthcare stocks that are catching the market’s eye.

With Nurix trading at $19.30 against an average analyst price target of about $29.65, and recent returns mixed across timeframes, investors may wonder whether there is still upside potential or if the market has already priced in future growth.

Price-to-Sales of 23.4x: Is it justified?

Nurix trades at a P/S ratio of 23.4x while the last close sits at $19.30, so the market is clearly paying a premium versus peers.

P/S compares the company’s market value to its revenue and is often used for early stage or unprofitable biotechs where earnings are not yet available.

For Nurix, this high P/S suggests investors are willing to pay a much higher price for each dollar of current revenue. This likely reflects expectations around its clinical pipeline and forecast revenue growth rather than present profitability. Against an estimated fair P/S of 0.2x, the current level is far higher and points to a valuation that could have room to compress if sentiment or growth expectations change.

Compared with the US Biotechs industry average P/S of 12.2x and a peer average of 6.1x, Nurix sits on a substantially richer multiple that stands out versus both direct peers and the broader sector.

Explore the SWS fair ratio for Nurix Therapeutics

Result: Price-to-Sales of 23.4x (OVERVALUED)

However, recent share price momentum sits against ongoing annual net losses of $244.785 million, and clinical trial or partnership setbacks could quickly cool sentiment around the stock.

Find out about the key risks to this Nurix Therapeutics narrative.

Build Your Own Nurix Therapeutics Narrative

If your view of Nurix’s story differs, or you simply prefer to weigh the data yourself, you can build a tailored thesis in just a few minutes using Do it your way.

A great starting point for your Nurix Therapeutics research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.