Analyst Jason Zemansky from Bank of America Securities maintained a Buy rating on Keros Therapeutics (KROS – Research Report) and keeping the price target at $33.00.
Jason Zemansky has given his Buy rating due to a combination of factors that highlight the potential of Keros Therapeutics’ KER-065. The anticipated phase 1 update for KER-065, expected in the first quarter of 2025, is seen as a pivotal moment that could positively influence investor sentiment, especially after the discontinuation of cibotercept. The early data, although from a small cohort, suggests promising efficacy and safety trends, such as increases in lean muscle mass without significant adverse events, which could re-engage investors.
Additionally, Zemansky points out that while safety remains a primary concern, Keros has made efforts to refine KER-065’s binding to avoid off-target effects, a challenge that has hindered similar programs in the past. The potential applications of KER-065 extend beyond Duchenne muscular dystrophy to other neuromuscular and neurodegenerative disorders, which could present a significant opportunity. Despite current negative sentiment and a decrease in share value, Zemansky believes the risk/reward profile is favorable, with shares trading below their potential upside, justifying the Buy rating and a price objective of $33.
In another report released on February 27, Leerink Partners also maintained a Buy rating on the stock with a $35.00 price target.