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    Immatics (NasdaqCM:IMTX) Valuation Check After Dilutive Follow-On Equity Offering and Sharp One-Day Share Price Drop

    Simply Wall St·12/08/2025 14:18:38
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    Immatics (NasdaqCM:IMTX) just priced a follow on equity offering, selling 12,500,000 new shares at 10 dollars each to raise about 125 million dollars, a move that directly affects shareholder dilution and funding runway.

    See our latest analysis for Immatics.

    The sharp 1 day share price return of negative 14.24 percent after the raise comes on the back of a powerful 90 day share price return of 75.82 percent and 1 year total shareholder return of 30.85 percent, suggesting momentum is cooling but the broader rerating remains intact.

    If you are weighing biotech risk reward trade offs after Immatics latest move, it is worth exploring other healthcare stocks that might have a different balance of growth and dilution risk.

    With shares still trading at a steep discount to analyst targets despite robust revenue growth but persistent losses, investors now face a pivotal question: Is Immatics undervalued after the raise, or already pricing in its future growth?

    Price-to-Sales of 12.5x: Is it justified?

    Immatics last closed at 10.18 dollars and the stock screens as expensive on a price-to-sales basis compared with both peers and the wider biotech group.

    The preferred multiple here is the price-to-sales ratio, which compares the companys market value with its annual revenue. This is a common yardstick for loss making, high growth biotechs where earnings are not yet meaningful.

    Immatics trades on a price-to-sales ratio of 12.5 times, above both its direct peer average of 10.3 times and the broader US biotech industry at 12 times. This implies investors are already paying a premium for its pipeline and forecast growth, even though our fair price-to-sales indicator suggests a much lower level of about 1 times as a potential anchor the market could converge toward if sentiment cools.

    That premium multiple stands out, not just versus comparable biotech names but also against the estimated fair ratio. It signals a valuation that is materially richer than what fundamentals alone might justify if execution or trial news were to disappoint.

    Explore the SWS fair ratio for Immatics

    Result: Price-to-Sales of 12.5x (OVERVALUED)

    However, setbacks in pivotal trials or slower than expected revenue traction from its TCR pipeline could quickly compress that premium valuation.

    Find out about the key risks to this Immatics narrative.

    Build Your Own Immatics Narrative

    If you see the story differently, or prefer digging into the numbers yourself, you can quickly build a personalized view in under three minutes: Do it your way.

    A great starting point for your Immatics research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

    Ready for your next opportunity?

    Immatics might be compelling, but your next big win could be hiding elsewhere; use the Simply Wall St Screener now so you do not miss it.

    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.