UBS maintains buy rating for Kymera Therapeutics stock after trial results

Published 03/06/2025, 14:58
UBS maintains buy rating for Kymera Therapeutics stock after trial results

On Tuesday, UBS analysts reiterated a Buy rating for Kymera Therapeutics stock (NASDAQ:KYMR), maintaining a $70.00 price target, as the stock surged over 53% in the past week. According to InvestingPro data, analyst targets range from $51 to $97, with nine analysts recently revising earnings estimates upward. The reaffirmation follows the company’s announcement of Phase 1 trial results for its STAT6 degrader, KT-621, in healthy volunteers.

The trial demonstrated that KT-621 achieved near-complete STAT6 degradation in blood at multiple ascending doses of 50mg and above. Additionally, the treatment showed robust degradation in skin and affected downstream Th2 pathway biomarkers. Specifically, KT-621 reduced TARC by a median of 37% and Eotaxin-3 by a median of 63% by Day 14.

Kymera noted minimal reductions in IgE levels, which aligns with observations from dupilumab in healthy volunteers, where no changes were noted within the first week and a modest maximal effect was observed after one month. Safety data from the trial indicated no serious adverse events or treatment-related adverse events leading to discontinuation.

Looking ahead, Kymera is expected to release data from the Phase 1b BroADen trial in atopic dermatitis in the fourth quarter of this year. The company also plans to initiate Phase 2b trials in atopic dermatitis and asthma in the fourth quarter of 2025 and the first quarter of 2026, respectively. While currently trading above InvestingPro’s Fair Value estimate, investors can access detailed financial analysis, 12 additional ProTips, and comprehensive valuation metrics through InvestingPro’s research reports, available for over 1,400 US stocks including KYMR.

In other recent news, Kymera Therapeutics has attracted considerable attention following several key developments. The company reported positive results from a Phase 1 trial of KT-621, a STAT6 degrader, which demonstrated promising pharmacokinetic and pharmacodynamic profiles without significant safety concerns. This news prompted Stifel to raise their price target for Kymera to $68, maintaining a Buy rating, while B. Riley upgraded the stock from Neutral to Buy, increasing their target to $60. Additionally, Morgan Stanley (NYSE:MS) upgraded Kymera from Equalweight to Overweight, raising the price target to $79, citing optimism about KT-621’s potential in treating conditions like atopic dermatitis.

H.C. Wainwright also maintained a Buy rating with a price target of $54, emphasizing the reduced risk for upcoming trials based on the recent data. Wells Fargo (NYSE:WFC) reaffirmed their Overweight rating with a price target of $57, expressing confidence in the stock’s trajectory as it approaches the Phase 1b data release. The recent deal between Sanofi (NASDAQ:SNY) and Nurix Therapeutics regarding a STAT6 candidate was noted as a positive indicator for Kymera’s prospects. These developments have positioned Kymera favorably in the biopharmaceutical sector, with analysts expressing optimism about the company’s future growth and potential success in upcoming trials.

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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