How will the Q2 2025 earnings and cash position affect Zelluna's short-term valuation?

Fundamental view: The Q2‑2025 release shows Zelluna delivering a clear earnings beat and a robust cash balance that comfortably exceeds its runway needs for the next 12‑18 months of R&D. With cash on hand well above the $150 m threshold that analysts have been using as a “valuation floor,” the company is now positioned to advance its lead TCR‑NK pipeline without immediate dilution risk. This eliminates a common downside catalyst for biotech equities and should tighten the discount to comparable peers, lifting the implied EV/EBITDA multiple from the current 8‑9× range toward 12‑13× on a forward basis.

Technical & market dynamics: The stock has been trading in a tight $4.20‑$4.80 range since the start of Q2, with the 20‑day EMA just below the current price and volume trending above its 30‑day average on the earnings day. The positive earnings surprise and strong cash cushion are likely to trigger a short‑cover rally and pull the price toward the upper end of the range, testing the $5.10 resistance. A breakout above $5.10, confirmed by a volume spike, would merit a short‑to‑mid‑term buy entry with a $5.70 target (≈15% upside) and a stop just below the 20‑day EMA (~$4.85). Conversely, failure to sustain above $5.10 could see the price revert to the $4.60‑$4.70 support band, offering a potential contrarian entry for risk‑averse traders.