BTIG raised its target and left its rating intact
BTIG has increased its price target for Nektar Therapeutics (NASDAQ:NKTR) to $151.00 from $118.00 and retained a Buy rating on the shares, naming the company among its top picks for the first half of 2026. The brokerage's revision follows an updated commercial model for rezpegaldesleukin (REZPEG) in atopic dermatitis that assumes the drug could be used as a first-line option for patients eligible for advanced treatments.
Share performance and valuation
Nektar's stock has rallied strongly over the last year, delivering a 253% return. At the same time, InvestingPro data cited by market watchers indicate the shares are trading above what InvestingPro assesses as the stock's Fair Value. BTIG's higher target reflects revised revenue expectations tied to clinical results and potential positioning of REZPEG in the atopic dermatitis treatment landscape.
Clinical data driving the update
BTIG pointed to the 52-week findings from the REZOLVE-AD study as a central justification for the price target boost. In particular, the firm highlighted that among patients who were EASI-50 responders at week 16, 51% of those receiving quarterly maintenance treatment progressed to EASI-75 or better by week 52 - a rate that surpasses BTIG's prior optimistic scenario threshold of greater than 40%.
The firm also emphasized favorable maintenance of EASI-90 responses relative to competing therapies Dupixent and Ebglyss. Additionally, BTIG noted EASI-100 results indicating a greater than 20% probability of fully clear skin within one year for patients who reached EASI-50 at week 16.
Profitability and analyst outlook
Despite Nektar reporting a robust gross profit margin of 87%, InvestingPro analysis and analyst commentary indicate the company remains unprofitable. Forecasts from analysts cited in market commentary expect continued losses for the current year.
Pipeline timing and upcoming catalysts
Nektar has outlined plans to initiate Phase 3 development of REZPEG for atopic dermatitis in the second quarter of 2026. The company also has a near-term data milestone on the calendar: 52-week REZOLVE-AA results, expected in the second quarter of 2026, which could reveal similar progressive efficacy in alopecia areata.
Additional trial readouts and analyst activity
Long-term data released from the Phase 2b REZOLVE-AD study showed that patients with moderate-to-severe atopic dermatitis maintained high response rates across key efficacy endpoints at week 52 with both monthly and quarterly dosing regimens. The data describe sustained efficacy during a 36-week maintenance period following an initial 16-week induction phase.
Following the clinical updates, William Blair upgraded Nektar's stock rating to Outperform, citing the positive rezpegaldesleukin data as a motivating factor. Piper Sandler reiterated an Overweight rating and kept a $105.00 price target, pointing to strong induction data for the candidate. Market observers say these moves reflect growing analyst confidence in the therapeutic's prospects.
Company focus and near-term expectations
Nektar continues to concentrate on advancing its clinical trials across indications, with additional topline results anticipated in the first quarter of 2026. Market participants note the company's clinical program and upcoming readouts as key drivers of investor interest while profitability metrics and valuation remain points of scrutiny.
Key points
- BTIG raised its Nektar price target to $151 from $118 and kept a Buy rating, naming NKTR a top pick for H1 2026.
- Revised modeling for REZPEG as a potential first-line option in advanced-treatment eligible atopic dermatitis patients underpins the target increase; strong 52-week REZOLVE-AD data are central to the view.
- Despite strong gross margin performance, Nektar remains unprofitable with analysts forecasting continued losses; upcoming Phase 3 initiation and 52-week REZOLVE-AA data in Q2 2026 are key catalysts.
Risks and uncertainties
- The company is not yet profitable despite an 87% gross profit margin, and analysts project ongoing losses this year - a financial risk affecting biotech and healthcare equity investors.
- InvestingPro indicates the stock trades above its assessed Fair Value, reflecting valuation risk for equity market participants in biotech.
- Upcoming clinical milestones - Phase 3 initiation and 52-week data readouts - are catalysts but also carry outcome uncertainty that could materially influence market sentiment in the biotech and pharmaceutical sectors.