Stifel resumes Kymera Therapeutics stock with Buy, $55 target

Published 20/05/2025, 10:16
Stifel resumes Kymera Therapeutics stock with Buy, $55 target

On Tuesday, Stifel analysts reinstated coverage on Kymera Therapeutics (NASDAQ:KYMR) shares, assigning a Buy rating and setting a price target of $55.00. This aligns with the broader Wall Street sentiment, as InvestingPro data shows analyst targets ranging from $38 to $97, with a Strong Buy consensus. Currently trading at $30.20, the stock appears undervalued according to InvestingPro’s Fair Value analysis. Stifel’s commentary highlighted Kymera Therapeutics’ position at the forefront of innovation within the immunology and inflammation (I&I) sector, through its development of a degrader platform that promises selective and potent oral drugs.

Kymera’s leading program, KT-621, is pioneering as a first-in-class STAT6 degrader, targeting the Th2 inflammatory pathway, which is downstream of IL-4/13 signaling. Stifel’s analysis suggests that KT-621 has the potential to match the efficacy of Dupixent in treating Atopic Dermatitis (AD), which could significantly impact the emerging AD market. Dupixent has set a high bar in the treatment of AD, and a comparable product profile does not currently exist, according to Stifel.

The company is expected to release Phase 1 data from healthy volunteers in June, with early proof of concept (PoC) data from AD patients anticipated in the fourth quarter of 2025. Stifel’s note underscores the importance of these upcoming data points in evaluating KT-621’s efficacy and market potential.

In addition to KT-621, Kymera is advancing its broader degrader pipeline, including the IRAK4 program, which is partnered with Sanofi (NASDAQ:SNY), and the recently disclosed IRF5 program with potential rheumatology applications. Stifel’s outlook for Kymera is optimistic, with the expectation that the company’s novel treatments could capture significant market share and offer additional therapeutic options beyond AD. While InvestingPro data indicates the company isn’t currently profitable, its Financial Health Score of "Fair" and strong liquidity position, with a current ratio of 8.49, suggest robust financial foundations for advancing its pipeline development.

In other recent news, Kymera Therapeutics has reported a narrower-than-expected loss for the first quarter of 2025, with an earnings per share (EPS) of -0.82, surpassing the forecasted -0.89. The company’s revenue also exceeded expectations, reaching $22.1 million against a forecast of $11.38 million. Truist Securities has maintained a Buy rating on Kymera Therapeutics, with a price target of $35, following the company’s introduction of KT-579, an innovative oral degrader targeting the IRF5 protein. Meanwhile, BTIG has adjusted its price target for Kymera to $55, down from $60, while maintaining a Buy rating, influenced by the company’s strategic pivot to focus on the IRF5 program and discontinue the TYK2 degrader. Kymera’s strategic decision to halt the TYK2 degrader is expected to extend its cash runway into the first half of 2028, according to management. The company remains focused on its STAT6 program, with high-value data anticipated in June. These recent developments reflect Kymera’s ongoing efforts to advance its pipeline in the treatment of inflammatory and autoimmune diseases.

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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