Keros Therapeutics stock price target lowered to $20 at H.C. Wainwright

Investing.com - H.C. Wainwright lowered its price target on Keros Therapeutics (NASDAQ:KROS) to $20.00 from $25.00 on Friday, while maintaining a Buy rating on the stock. According to InvestingPro data, the stock appears undervalued at current levels, with analysts setting targets ranging from $15 to $35.

The firm’s decision follows Keros Therapeutics’ strategic narrowing of focus to a single internal clinical program: KER-065 for Duchenne muscular dystrophy (DMD). This restructuring included the discontinuation of cibotercept due to an unfavorable safety profile in PAH and the outlicensing of elritercept to Takeda, which has initiated a Phase 3 trial in MDS.

Keros provided detailed updates on KER-065’s scientific rationale and Phase 1 data, which demonstrate systemic anabolic, anti-inflammatory, and anti-fibrotic effects. The company plans to initiate a Phase 2 trial in DMD in the first quarter of 2026, pending FDA input expected later this year.

The biotech company maintains a strong financial position with $690 million in cash and plans a $375 million return of capital to shareholders. This financial cushion provides operational runway through the first half of 2028.

H.C. Wainwright cited these developments in its decision to lower the price target while maintaining its positive outlook on the company’s focused strategy.

In other recent news, Keros Therapeutics has announced the discontinuation of its cibotercept development program, following the termination of its Phase 2 clinical trial for pulmonary arterial hypertension. The company is now focusing its resources on the KER-065 clinical program. Additionally, Keros has dosed the first patient in its Phase 3 RENEW clinical trial for elritercept, targeting adults with transfusion-dependent anemia in myelodysplastic syndromes, triggering a $10 million payment under its agreement with Takeda. Bank of America Securities downgraded Keros’ stock from Buy to Neutral and lowered the price target to $18, citing concerns about the near-term potential for stock price appreciation and safety issues. This downgrade follows Keros’ decision to return $375 million in excess capital to shareholders, part of a strategic review to enhance stockholder value. Meanwhile, significant shareholder dissent has been reported, with ADAR1 Capital Management criticizing the board’s capital allocation strategy and expressing dissatisfaction with the election results of two directors. Despite these challenges, Keros remains committed to advancing its pipeline, with plans to discuss further steps with the FDA regarding KER-065.

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