BofA Securities upgrades Kymera stock to buy after promising trial data

On Monday, BofA Securities analysts upgraded Kymera Therapeutics stock (NASDAQ: KYMR) from Neutral to Buy, raising the price target to $51 from $44. The decision follows new data from a phase 1 trial of Kymera’s STAT6 degrader, KT-621, which showed promising results. This upgrade aligns with broader analyst sentiment, as InvestingPro data shows eight analysts have recently revised their earnings expectations upward, with price targets ranging from $38 to $97.

The analysts noted that the trial data exceeded expectations, particularly in terms of STAT6 degradation. They observed a degradation rate of over 90% at all doses above 1.5mg, which correlated with a reduction in biomarkers in healthy volunteers.

Management at Kymera emphasized that this data provides mechanistic validation for the treatment. However, they also noted that further data from patient trials would be necessary to fully understand the clinical efficacy of the treatment.

The analysts expressed optimism about the early data, suggesting it could lead to positive developments in future patient trials. They are anticipating initial phase 1b data in patients with atopic dermatitis (AD) in the fourth quarter, which could offer further validation of KT-621’s potential.

Kymera Therapeutics is moving forward with its research, hoping to demonstrate clinical efficacy in treating conditions such as AD and asthma. The recent upgrade reflects the analysts’ increased confidence in the company’s pipeline following the promising trial results.

In other recent news, Kymera Therapeutics announced positive results from its Phase 1 trial of KT-621, an oral STAT6 degrader. The trial demonstrated over 90% mean degradation of STAT6 in the blood at doses above 1.5 mg, with complete degradation in both blood and skin at doses equal to or greater than 50 mg. The safety profile of KT-621 was comparable to a placebo, with no serious adverse events reported. Stifel and Citi analysts both maintained their Buy ratings on Kymera stock, with price targets of $55.00 and $52.00, respectively, following the promising trial outcomes. The analysts noted that the trial results exceeded expectations and significantly derisked the program, enhancing KT-621’s potential as an oral therapy for IL-4/IL-13-driven allergic diseases. Kymera is actively recruiting for its BroADen Phase 1b trial in moderate to severe atopic dermatitis, with results expected in the fourth quarter of 2025. Additionally, the company plans to initiate two Phase 2b trials in atopic dermatitis and asthma by the end of 2025 and early 2026. The developments reflect Kymera’s ongoing efforts to expand treatment options in the inflammation and immunology space.

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