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On Tuesday, Kura Oncology (NASDAQ:KURA), currently trading at $6.51, maintained its Market Outperform rating and a $28.00 price target, as confirmed by analysts at Citizens JMP. According to InvestingPro data, analysts’ price targets range from $10 to $40, with a strong consensus recommendation of 1.47 (where 1 is a Strong Buy). The endorsement follows Kura’s recent presentation at the 2025 AACR Annual Meeting, where the company showcased promising data regarding its drug candidate KO-2806. This drug, a farnesyl transferase inhibitor, is being studied in combination with cabozantinib for the treatment of renal cell carcinoma (RCC).
The analysts expressed confidence in the company’s prospects, citing the anticipated approval of the drug by the end of the year. They also noted the financial strength of Kura Oncology, mentioning its well-funded zifto franchise for first-line acute myeloid leukemia (AML) treatment, specifically in cases with NPM1/KMT2A mutations. The firm’s cash position was reported to be strong at $727.4 million, which includes $420 million in remaining milestone payments, with an expectation of $240 million to be recognized in 2025. InvestingPro analysis confirms this financial stability, showing a healthy current ratio of 9.46 and more cash than debt on the balance sheet. Discover 8 more key financial insights about KURA with an InvestingPro subscription.
The positive outlook is further supported by the company’s current enterprise value, which the analysts highlighted as being approximately negative $200 million. This valuation suggests that the market may be undervaluing Kura’s shares, presenting a potentially attractive investment opportunity. According to InvestingPro’s Fair Value analysis, the stock appears undervalued at its current market cap of $525.86 million. For deeper insights into undervalued opportunities, explore InvestingPro’s comprehensive research reports covering 1,400+ US stocks.
The analysts’ report emphasizes the significance of the AACR presentation, which detailed the mechanism of action and the potential therapeutic benefits of KO-2806 in RCC. The combination of this drug with cabozantinib, a known inhibitor of multiple tyrosine kinases, could offer a new avenue for RCC treatment pending regulatory approval.
Kura Oncology’s stock performance and investor sentiment are likely to be influenced by the progression of its clinical trials and the achievement of its financial milestones as projected by the analysts. The company’s strategic positioning and research advancements are key factors that continue to attract attention in the biopharmaceutical sector.
In other recent news, Kura Oncology reported a better-than-expected earnings performance for the fourth quarter of 2024. The company achieved an earnings per share of -$0.22, significantly surpassing the forecast of -$0.57, with collaboration revenue reaching $53.9 million. This marks a notable increase from the previous year, where no collaboration revenue was recorded. Additionally, Kura Oncology has submitted a New Drug Application (NDA) for its drug candidate, ziftomenib, aimed at treating relapsed/refractory NPM1-mutated acute myeloid leukemia (AML). The submission follows the drug’s Breakthrough Therapy Designation by the FDA, which could potentially lead to an approval by late November or early December. Analyst Reni J. Benjamin from JMP Securities reiterated a Market Outperform rating for Kura Oncology, maintaining a price target of $28.00. The company also announced that its abstract on KO-2806, a farnesyl transferase inhibitor, was accepted for oral presentation at the American Association for Cancer Research Annual Meeting. Kura Oncology is progressing with its Phase 1 FIT-001 trial, assessing KO-2806 in solid tumor indications, with results expected in the second half of 2025.
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