Cantor Fitzgerald sets $74 target on Korro Bio stock with Overweight rating

Published 29/04/2025, 11:38
Cantor Fitzgerald sets $74 target on Korro Bio stock with Overweight rating

Tuesday, Korro Bio Inc. (NASDAQ:KRRO) shares received a positive outlook from Cantor Fitzgerald as the firm initiated coverage with an Overweight rating and established a 12-month price target of $74.00, significantly above the current trading price of $17.47. According to InvestingPro data, analyst targets for the stock range from $25 to $180, with the company’s next earnings report due on May 13. Cantor Fitzgerald’s analysis points to Korro’s potential impact in the field of RNA editing oligonucleotide therapeutics, highlighting the company’s promising treatment, KRRO-110, which is being developed for Alpha-1 antitrypsin deficiency (AATD).

AATD is described as an increasingly competitive space with significant market potential. While Cantor Fitzgerald suggests that KRRO-110 may represent the most effective treatment option for this condition, InvestingPro data shows the stock has fallen over 70% in the past six months, presenting a potential opportunity for investors. The firm’s confidence in Korro extends to the anticipation of the company’s next clinical program, which could target Phenylketonuria (PKU) or a similar undisclosed condition. The analyst’s remarks included a reference to slides from a company presentation that offer insights into their hypotheses regarding Korro’s strategic direction.

Korro Bio’s focus on RNA editing oligonucleotide therapeutics positions it at the forefront of genetic medicine, a field that aims to address diseases at the molecular level. While the company maintains a strong liquidity position with a current ratio of 8.79 and more cash than debt, InvestingPro analysis indicates the company is quickly burning through cash. The Overweight rating by Cantor Fitzgerald indicates the firm’s belief that Korro’s stock could outperform the average total return of the stocks in the analyst’s industry coverage universe over the next 12 months.

The price target of $74.00 reflects the firm’s confidence in the company’s prospects and the potential of its lead candidate, KRRO-110, to capture a significant share of the AATD treatment market. With a market capitalization of $164 million and according to InvestingPro’s Fair Value analysis, the stock appears to be currently undervalued. The initiation of coverage and the positive rating are expected to draw investor attention to Korro Bio as it continues to develop its therapeutic pipeline. Discover 12 additional exclusive ProTips and comprehensive analysis in the Pro Research Report, available with an InvestingPro subscription.

Korro Bio’s strategic focus and the potential for its upcoming clinical programs are key factors underpinning Cantor Fitzgerald’s optimistic stance on the company’s stock. As the market for RNA-based therapies grows, Korro Bio is poised to be a notable player in the space with its innovative approach to treating genetic conditions.

In other recent news, Korro Bio Inc. reported several significant developments that may interest investors. The company announced that its investigational treatment for Alpha-1 Antitrypsin Deficiency (AATD), KRRO-110, has received orphan drug designation from the U.S. Food and Drug Administration (FDA). This designation provides benefits such as tax credits and the potential for market exclusivity, which are designed to encourage the development of treatments for rare diseases. Additionally, Korro Bio has completed dosing for the first two cohorts in its Phase 1/2 trial of KRRO-110, with interim results anticipated in the second half of 2025.

In terms of leadership changes, Korro Bio appointed Loïc Vincent, Ph.D., as Chief Scientific Officer, bringing extensive drug development experience to the company. Vineet Agarwal has resumed his role as Chief Financial Officer after a medical leave, and Oliver Dolan has been appointed as the principal accounting officer. Analyst firms have shown confidence in Korro Bio, with Chardan Capital Markets initiating a Buy rating with a $25 price target, and H.C. Wainwright maintaining a Buy rating with a $115 price target. These analysts highlight the potential of Korro Bio’s RNA editing platform, OPERA, and the promising prospects of its lead candidate, KRRO-110.

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