Yigal Nochomovitz, an analyst from Citi, maintained the Hold rating on Krystal Biotech. The associated price target was raised to $176.00.
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Yigal Nochomovitz has given his Hold rating due to a combination of factors surrounding Krystal Biotech’s recent developments and future prospects. The initiation of the Ph1/2 EMERALD-1 trial for KB801 in treating Neurotrophic Keratitis (NK) is a significant step, yet the efficacy of KB801 in a clinical setting remains to be seen. The trial’s design, including a placebo-controlled setup and a focus on corneal healing, provides a cautious optimism about KB801’s potential, but the lack of current efficacy data tempers expectations.
While the potential for KB801 to differentiate itself from existing treatments like Oxervate is noted, particularly in terms of dosing regimen and NGF protein duration, Nochomovitz assigns a 25% probability of success (PoS) in the US and EU, reflecting a conservative stance pending further data. The increase in target price to $176 reflects these cautious yet optimistic projections, but the Hold rating suggests that investors should wait for more concrete results before making significant investment decisions.
Nochomovitz covers the Healthcare sector, focusing on stocks such as Arcturus Therapeutics, Summit Therapeutics, and Travere Therapeutics. According to TipRanks, Nochomovitz has an average return of 3.7% and a 40.00% success rate on recommended stocks.