Nektar Therapeutics (NKTR) is back in focus after announcing that Phase 2b data for its lead candidate, rezpegaldesleukin, in atopic dermatitis and alopecia areata will be featured in two oral presentations at the 2026 American Academy of Dermatology meeting.

The rezpegaldesleukin update lands after a sharp turnaround in sentiment, with a 90 day share price return of 67.21% and a 1 year total shareholder return of almost 5x despite a weak 2025 earnings print and ongoing class action headlines. However, the 5 year total shareholder return remains deeply negative.

If rezpegaldesleukin has put Nektar back on your radar, it may be worth seeing what else is moving in immunology and biotech via our 36 healthcare AI stocks

With Nektar now valued at about US$2.1b, a 1-year total return of almost 5x, and revenue of US$55.23 million against a net loss of US$164.08 million, is there still an opportunity here, or is the market already pricing in future growth?

Most Popular Narrative: 46% Undervalued

On the most followed valuation narrative, Nektar's fair value estimate of $136.43 sits well above the last close at $74.34, putting rezpegaldesleukin at the center of the story.

Bullish analysts point to rezpegaldesleukin as a core value driver, with some models assigning multi billion dollar sales potential across atopic dermatitis and alopecia, which feeds directly into higher fair value estimates for the equity.

The decision to advance rezpegaldesleukin into a Phase 3 program for atopic dermatitis is seen as an important execution milestone that supports higher long term revenue assumptions in several models.

Curious what kind of revenue path, margin shift, and future earnings multiple have to line up to support that fair value gap? The full narrative lays out a detailed playbook built around rezpegaldesleukin timelines, forecast contraction in near term revenues, and a very stretched future P/E assumption that ties everything back to that $136.43 figure.

Result: Fair Value of $136.43 (UNDERVALUED)

However, the story can break if rezpegaldesleukin stumbles in later stage trials or if funding tightens and forces slower development and shareholder dilution.

Another View: Rich Sales Multiple Raises the Bar

That 46% undervalued fair value story sits awkwardly next to Nektar's current P/S ratio of 38.6x, compared with 3.9x for the US Pharmaceuticals industry, 9.3x for peers, and a fair ratio of 15.3x. The market is already paying up, so the key question is how much more optimism that can support.

Next Steps

With such a split between optimism around rezpegaldesleukin and concern over execution and funding, it makes sense to look at the full risk reward balance yourself and review the 2 key rewards and 4 important warning signs

Looking for more investment ideas?

If you stop with just one stock, you could miss plenty of others that fit your style, so use the tools available and keep your watchlist working hard.

• Target higher quality at a sensible price by scanning companies on our 55 high quality undervalued stocks.
• Prioritize sleep-at-night stability by focusing on companies highlighted in the 74 resilient stocks with low risk scores.
• Stay ahead of the crowd by hunting for underfollowed names surfaced in the screener containing 26 high quality undiscovered gems.

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.