Celcuity (CELC) Could Be 50% Below Fair Value As Gedatolisib Story Stays In Focus

Recent trading in Celcuity (CELC) has drawn attention after the share price closed at $80.61. The biotechnology company is still at a clinical stage and reports no revenue but continues to incur net losses.

Short term trading in Celcuity has cooled, with the share price down 5.06% over the past day and 11.0% over the past month. However, the 1 year total shareholder return of 55.38% and roughly 7x total return over three years indicate that longer term momentum has been strong.

Spot fresh momentum stories by lining up Celcuity next to hand picked biotech plays in the 16 high quality undiscovered gems.

Celcuity now trades near US$80 after a sharp multi year climb and a recent pullback. Do the current risks still justify paying up, or has the balance shifted for new buyers?

Most Popular Narrative: 50% Undervalued

Celcuity’s most followed valuation narrative places fair value at about $161 per share, roughly double the recent $80.61 close. This perspective places considerable weight on gedatolisib translating clinical data into future cash flows.

Management estimates a US$5b to US$6b addressable market in second line HR positive, HER2 negative advanced breast cancer and has indicated potential peak revenue for gedatolisib of US$2.5b to US$3b in this setting. If partially realized, this would be a key driver of top line growth over time.

See why 4 investors see Celcuity as 50% undervalued.

Result: Fair Value of $161.09 (UNDERVALUED)

Still, the bullish Celcuity story hinges on gedatolisib clearing key regulatory hurdles and on future trials avoiding safety or efficacy setbacks that could derail adoption.

Find out about the key risks to this Celcuity narrative.

Next Steps

Mixed signals around Celcuity’s risk and reward profile make this a good moment to look past the headlines and check the underlying data yourself. To weigh both sides of the story in one place, review the 3 key rewards and 3 important warning signs.

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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.

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