Hold Rating on Keros Therapeutics Amid Strategic Review and Clinical Setbacks

Keros Therapeutics (KROS – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Yun Zhong from Wedbush maintained a Hold rating on the stock and has a $15.00 price target.

Yun Zhong has given his Hold rating due to a combination of factors surrounding Keros Therapeutics. The decision to discontinue cibotercept for PAH was anticipated, given the high incidence of pericardial effusions observed in clinical trials, which were dose-dependent and exceeded those in the placebo group. Despite some numerical differences in efficacy at higher doses, the lack of statistically significant results in primary and secondary endpoints further justified this decision.
Additionally, the company is undergoing a strategic review process, which may lead to changes in direction, although management remains committed to advancing the KER-065 program. The company’s strong financial position, with substantial cash reserves, provides it with the flexibility to explore various strategic options, including potential acquisitions. These factors collectively contribute to the Hold rating, as the future direction of the company remains uncertain pending the outcome of the strategic review.

According to TipRanks, Zhong is an analyst with an average return of -20.0% and a 32.84% success rate. Zhong covers the Healthcare sector, focusing on stocks such as Protagonist Therapeutics, Rocket Pharmaceuticals, and Keros Therapeutics.