Immunic price target lowered to $10 from $17 at D. Boral Capital

D. Boral Capital lowered the firm’s price target on Immunic (IMUX) to $10 from $17 and keeps a Buy rating on the shares after the company priced an oversubscribed $65M underwritten public offering structured as a unit offering at $0.7499 per unit, with each unit comprising one pre-funded warrant, one Series A warrant, and one Series B warrant. While this capital raise is a near-term positive for operating runway, the structure of the deal, which includes pre-funded warrants and two classes of exercisable warrants, implies a potential for substantial dilution, bringing up to 260M new shares into play, which justifies a downward revision in valuation, the analyst tells investors.