BTIG analyst Justin Zelin has maintained their neutral stance on KURA stock, giving a Hold rating on June 4.
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Justin Zelin’s rating is based on the recent data presented by Kura Oncology at the EHA conference, which showed promising efficacy of ziftomenib in combination with 7+3 therapy for frontline AML patients. The high complete response rates and MRD negativity are noteworthy, but the overall survival data is still immature, with median overall survival not yet reached for both NPM1 and KMT2Ar patients. Additionally, while the safety profile of ziftomenib appears manageable, with minimal additive toxicity and low rates of severe adverse events, there are still concerns regarding QTc prolongation in some patients.
Despite the encouraging response rates, the uncertainty surrounding long-term outcomes and the potential for adverse effects may have contributed to the Hold rating. The valuation of Kura Oncology, based on a discounted cash flow analysis with a 12% discount rate, also plays a role in this cautious stance. Investors are advised to wait for more mature data and further developments in the company’s broader pipeline before making significant investment decisions.
In another report released on June 4, Scotiabank also maintained a Hold rating on the stock with a $8.00 price target.