Morgan Stanley upgrades Kymera stock rating, raises price target

Published 03/06/2025, 09:08
Morgan Stanley upgrades Kymera stock rating, raises price target

On Tuesday, Morgan Stanley (NYSE:MS) analysts upgraded Kymera Therapeutics stock (NASDAQ: KYMR) from Equalweight to Overweight. The analysts also raised the price target to $79 from $49, reflecting optimism about the company’s prospects. The upgrade adds to the positive sentiment, with InvestingPro data showing eight analysts revising their earnings estimates upward. Currently trading at $43.13, analyst targets range from $38 to $97.

The analysts highlighted the promising development of Kymera’s KT-621, which is still in the early stages. They noted that recent updates on the compound are crucial for Kymera’s focus on STAT6, indicating a broad therapeutic window and a strong safety profile, particularly in dermatology applications like atopic dermatitis. While the company maintains a strong financial position with more cash than debt and a healthy current ratio of 8.49, InvestingPro analysis indicates the company is not expected to be profitable this year.

The analysts emphasized the impressive target knockdown observed with KT-621, especially in skin applications. They expressed confidence in the molecule’s potential, citing the safety profile as a significant factor for dermatology experts evaluating its use in conditions such as atopic dermatitis.

Looking ahead, the analysts are optimistic about the future developments for KT-621. They anticipate initial patient data in the fourth quarter of 2025 and the commencement of Phase II programs in atopic dermatitis and asthma by early 2026, marking significant milestones for the company.

These developments have contributed to Morgan Stanley’s positive outlook on Kymera Therapeutics, prompting the upgrade and increased price target.

In other recent news, Kymera Therapeutics has reported positive results from its Phase 1 trial for KT-621, an oral STAT6 degrader. The trial demonstrated over 90% STAT6 degradation at doses above 1.5 mg, with complete degradation at higher doses, and showed a favorable safety profile with no serious adverse events. Analysts from Truist Securities, Citi, BofA Securities, and Stifel have responded positively, maintaining or upgrading their Buy ratings on Kymera’s stock. Citi analysts notably raised their price target to $60, citing the strong data and Kymera’s solid financial position, while BofA Securities upgraded the stock to Buy with a new price target of $51. The promising results have led to increased optimism about KT-621’s potential as a treatment for conditions like atopic dermatitis and asthma. Kymera is planning further trials, with Phase 1b data expected in late 2025 and subsequent Phase 2b trials in 2025 and 2026. The company’s strategic focus on developing oral treatments with efficacy comparable to injectable biologics is seen as a significant advantage in the expanding market for inflammation and immunology treatments.

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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