Trump announces 100% chip tariff as Apple ups U.S. investment
Investing.com - Brookline Capital Markets lowered its price target on Kymera Therapeutics (NASDAQ:KYMR) to $70.00 from $97.00 on Wednesday, while maintaining a Buy rating on the stock. The company’s shares have shown remarkable strength, delivering a 51% return over the past year, though InvestingPro data indicates the stock is currently in overbought territory.
The firm cited changes in the timing of collaboration revenue from Sanofi (NASDAQ:SNY) as a key factor in the revision. Brookline adjusted its revenue estimates for 2025-2027 and extended the timeline for expected collaboration revenue through 2033 rather than 2029, aligning with the anticipated development timeline of KT-485 versus KT-474. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 8.49 and holds more cash than debt on its balance sheet.
Brookline also reduced estimated revenue for 2028-2030 due to the elimination of previously projected royalty revenue for KT-474. The firm introduced new revenue estimates for 2031-2035, which include anticipated product launches of KT-621 in 2031, followed by KT-579 and KT-485 in 2032.
Operating expense estimates remain unchanged for 2025-2026 but were decreased for 2027-2030. Due to the reduced revenue projections for 2025-2030, Brookline now estimates Kymera will need to raise $1.3 billion between 2027 and 2031.
The price target reduction to $70 from $97 directly results from these changes to estimated revenue timing and program development schedules, though Brookline maintained its positive outlook with a Buy rating on the stock. For deeper insights into Kymera’s development timeline and financial projections, InvestingPro subscribers can access the comprehensive Pro Research Report, which includes detailed analysis of the company’s pipeline and financial outlook.
In other recent news, Kymera Therapeutics has announced a $250 million public stock offering, which includes common stock and pre-funded warrants. The offering, managed by Morgan Stanley (NYSE:MS), J.P. Morgan, Jefferies, TD Cowen, and Leerink Partners, aims to fund the advancement of Kymera’s preclinical and clinical degrader programs. In a significant development, Sanofi has chosen to advance Kymera’s oral IRAK4 degrader KT-485 into clinical testing for immuno-inflammatory diseases, while dropping the earlier candidate, KT-474, due to safety concerns. Kymera received a $20 million milestone payment related to KT-485, with the potential for up to $975 million in future milestones. Additionally, Kymera has entered a new collaboration with Gilead Sciences (NASDAQ:GILD) for CDK2 degraders in oncology, though financial details were not disclosed. Analysts at UBS have maintained a Buy rating for Kymera, citing promising Phase 1 trial results for its STAT6 degrader, KT-621, which showed significant biomarker degradation. Leerink Partners also maintained an Outperform rating, focusing on Kymera’s STAT6 degrader as a primary investment thesis. These recent developments highlight Kymera’s ongoing efforts to advance its therapeutic pipeline and partnerships.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.