Krystal Biotech stock price target lowered to $182 at BofA on growth concerns

Published 04/08/2025, 17:50
Krystal Biotech stock price target lowered to $182 at BofA on growth concerns

Investing.com - BofA Securities lowered its price target on Krystal Biotech (NASDAQ:KRYS) to $182 from $192 on Monday while maintaining a Buy rating, citing concerns about near-term growth trajectory. According to InvestingPro data, the stock appears undervalued based on its Fair Value analysis, with analyst targets ranging from $176 to $252.

The price target reduction follows Krystal Biotech’s second-quarter Vyjuvek revenues of $96 million, which exceeded BofA’s estimate of $95 million and consensus expectations of $92 million. Despite the revenue beat, the company’s shares fell approximately 13% after management indicated third-quarter revenue would be lower than second-quarter figures due to patient pausing trends. InvestingPro data reveals impressive gross profit margins of 93.2% and an excellent financial health score, with more than 10 additional ProTips available to subscribers.

BofA noted that Krystal Biotech is behind on its goal of reaching 720 reimbursement approvals originally targeted for September/October, with that target now shifted to early next year. This delay contributes to the unpredictability in the company’s near-term growth outlook.

Recent regulatory approvals in the European Union and Japan are expected to create additional revenue opportunities outside the United States. The company plans to launch in Germany in the third quarter of 2025, followed by France in the fourth quarter and Japan by year-end 2025.

BofA’s updated financial model reflects decreased near-term Vyjuvek revenues and delayed launches for Krystal’s pipeline products KB407 and KB408.

In other recent news, Krystal Biotech Inc. reported its financial results for the second quarter of 2025, surpassing analysts’ expectations. The company announced earnings per share (EPS) of $1.29, which exceeded the projected $1.22. Revenue also outperformed forecasts, reaching $96.04 million compared to the anticipated $92.24 million. Despite these positive financial results, the company’s stock experienced a decline in pre-market trading, attributed to cautious guidance for the upcoming quarter. The earnings announcement highlights Krystal Biotech’s ability to exceed market expectations, although future outlook concerns have impacted investor sentiment. These recent developments are essential for investors to consider when evaluating the company’s financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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