Humacyte (HUMA) is back on investor radar after the Fiscal Year 2026 U.S. Department of Defense Appropriations Act earmarked funding to evaluate and potentially incorporate biologic vascular repair technologies for traumatic military injuries.

The DoD funding news has arrived alongside sharp short term momentum, with a 1 day share price return of 30.02% and a 7 day gain of 19.61% at a last close of $1.22. However, this sits against a 1 year total shareholder return decline of 70.46%, suggesting recent optimism is emerging after a difficult period.

If Humacyte’s move has you thinking about where medical technology could head next, you might want to scan a broader set of healthcare AI names through our screener of 26 healthcare AI stocks.

With Humacyte still trading near US$1.22 after a 70.46% 1 year total return decline, yet sitting at a discount to the US$7.71 analyst price target, you have to ask: is there real upside here, or is the market already pricing in future growth?

Most Popular Narrative: 94.7% Undervalued

Humacyte’s most followed narrative pegs fair value at $22.83 versus a last close of $1.22, so the story hinges on very ambitious long term targets.

Positive Phase III results for the ATEV in dialysis access, targeting women and high risk men who represent more than half of the dialysis population, align with a large, chronically treated patient group that could influence longer term revenue and earnings if an added indication is approved.

Planned first in human studies for the coronary tissue engineered vessel in CABG, where few new conduits have entered U.S. practice in decades, offer a potential entry into a large cardiac surgery market that could add new revenue streams over time.

Curious what has to go right for that price gap to close? This narrative leans on rapid revenue expansion, a sharp swing into profitability and a future earnings multiple that assumes real traction. The exact hurdles are baked into the numbers, but you will only see them when you read the full breakdown.

Result: Fair Value of $22.83 (UNDERVALUED)

However, this story can break quickly if cash burn stays heavy against modest revenue, or if dialysis and trauma uptake fall short of what bullish forecasts assume.

Build Your Own Humacyte Narrative

If you look at this and think the assumptions feel off, or you would rather test your own, you can build a fresh thesis in just a few minutes with Do it your way.

A great starting point for your Humacyte research is our analysis highlighting 1 key reward and 4 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If Humacyte has sparked your interest, do not stop here. The next opportunity you are looking for could be sitting on another part of the market.

• Hunt for potential value setups by scanning our list of 52 high quality undervalued stocks that pair quality fundamentals with prices that may not fully reflect them.
• Steady your portfolio by checking out 82 resilient stocks with low risk scores, focused on companies with lower risk scores that might help smooth out the bumps.
• Get ahead of the crowd by browsing our screener containing 24 high quality undiscovered gems, where smaller names with solid underpinnings could sit before they attract wider attention.

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.