Cautious Hold Rating for Kymera Therapeutics Amid Anticipation of STAT6 Degrader Data

Kymera Therapeutics (KYMR – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Vikram Purohit from Morgan Stanley maintained a Hold rating on the stock and has a $49.00 price target.

Vikram Purohit has given his Hold rating due to a combination of factors surrounding Kymera Therapeutics’ upcoming data release for their STAT6 degrader, KT-621. The primary focus is on the safety and tolerability of the drug, as the initial Phase I data will provide the first clinical insights. Kymera’s management has expressed confidence in the safety profile, supported by genetic data showing no adverse effects in similar contexts.
Another critical factor is the target degradation level, with the company aiming for over 90% degradation of STAT6. This is crucial for demonstrating the drug’s potential efficacy, especially in comparison to existing treatments like dupilumab. While achieving this target in both blood and skin is desired, the priority is on blood results. These factors combined suggest a cautious approach, justifying the Hold rating as investors await more definitive data.

Purohit covers the Healthcare sector, focusing on stocks such as Genmab, Ascendis Pharma, and Axsome Therapeutics. According to TipRanks, Purohit has an average return of -7.3% and a 32.03% success rate on recommended stocks.

In another report released on May 30, Bank of America Securities also maintained a Hold rating on the stock with a $44.00 price target.