Jefferies assumes coverage on Immunocore stock with Buy rating, $48 target

Jefferies has initiated coverage on Immunocore Holdings (IMCR) with a Buy rating and a $48 price target, citing the company's strong fundamentals and its T-cell receptor platform. The firm highlighted the approved melanoma drug KIMMTRAK's $350 million-plus run rate and the significant upside potential from its pipeline, including the Phase 3 PRAME program. This follows Immunocore's Q2 2025 earnings, which reported a revenue beat of $98 million against a $92.04 million forecast, though earnings per share missed expectations at -$0.20, leading to a mixed market reaction.

Analysis

Jefferies has initiated coverage on Immunocore Holdings (IMCR) with a Buy rating and a $48.00 price target, signaling substantial potential upside from its current trading price of $32.93. The investment thesis is anchored in the company's T-cell receptor platform and the performance of its approved melanoma drug, KIMMTRAK, which is generating a run rate exceeding $350 million. Jefferies' valuation analysis suggests that a 3-4x multiple on KIMMTRAK's sales alone would justify an enterprise value between $1.0 billion and $1.4 billion, which aligns closely with the company's current enterprise value of approximately $1.1 billion. This implies the market is currently attributing minimal value to the company's broader pipeline. While the PRAME program in first-line melanoma presents a significant long-term opportunity, its Phase 3 data is not expected until 2027. The company's recent Q2 2025 financial results were mixed; while revenue of $98 million surpassed the $92.04 million forecast, the earnings per share of -$0.20 fell short of the -$0.18 consensus. This performance dichotomy is complemented by potential near-term catalysts, with additional data on EPS and hepatitis B virus anticipated in the second half of 2025.

Key Decisions for Investors

• Investors with a long-term horizon might consider the stock undervalued, as Jefferies' analysis implies the current enterprise value is largely supported by the existing KIMMTRAK drug, offering the pipeline as potential upside at a minimal cost.
• Despite the bullish analyst rating, the recent EPS miss and the distant 2027 timeline for key PRAME data warrant caution, suggesting investors should weigh the growth potential against execution risk and recent financial performance.
• Traders and investors should closely monitor the upcoming hepatitis B virus data expected in the second half of 2025, as a positive outcome could serve as a significant near-term catalyst and validate the platform beyond its current approved indication.