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Investing.com - Morgan Stanley (NYSE:MS) initiated coverage on Kymera Therapeutics (NASDAQ:KYMR) with an Overweight rating and a $70.00 price target, highlighting the company’s protein degradation and drug discovery expertise. The stock has shown strong momentum with a 47.65% return over the past year, currently trading near $44.53.
The research firm noted that Kymera is developing oral small molecule approaches to target immunological pathways that have been validated by biologics. Morgan Stanley views recent healthy volunteer data with KT-621, an oral STAT6 degrader, as an important derisking factor. 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.
The firm also cited Kymera’s partnerships with Sanofi (NASDAQ:SNY) and Gilead as providing validation of the company’s capabilities, despite its candidates being in early clinical or preclinical development stages.
Morgan Stanley’s $70 price target is primarily based on opportunities for KT-621 in atopic dermatitis and asthma, along with modest contribution from the IRAK4 collaboration, with additional indications and pipeline candidates representing potential upside.
The firm identified the fourth quarter of 2025 initial atopic dermatitis patient data for KT-621 as the likely next key catalyst for Kymera shares, concluding that the stock offers favorable risk/reward at current levels. Based on InvestingPro’s Fair Value analysis, the stock is currently trading near its fair value, with analyst targets ranging from $53 to $79.
In other recent news, Kymera Therapeutics has made several notable announcements. The company has commenced a $250 million public stock offering, which includes common stock and pre-funded warrants, with major financial firms like Morgan Stanley and J.P. Morgan acting as joint book-running managers. Kymera intends to use the proceeds to further its pipeline of degrader programs and for general corporate purposes. Additionally, Kymera announced a strategic shift in collaboration with Sanofi, where the development of KT-474 was discontinued in favor of KT-485, a next-generation oral IRAK4 degrader. This decision has influenced analysts’ perspectives, with BofA Securities raising its price target to $54 and H.C. Wainwright increasing it to $60, citing the potential of the STAT6 program as a key value driver. However, Brookline Capital Markets lowered its price target to $70 due to changes in expected collaboration revenue timelines. Furthermore, Kymera disclosed a new license agreement with Gilead Sciences (NASDAQ:GILD) to develop a novel CDK2 degrader. These recent developments highlight Kymera’s ongoing efforts in advancing its clinical and business strategies.
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