In a report released today, Yun Zhong from Wedbush maintained a Hold rating on Keros Therapeutics, with a price target of $15.00.
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Yun Zhong has given his Hold rating due to a combination of factors related to Keros Therapeutics’ recent strategic decisions and ongoing developments. The company has decided to streamline its operations to focus exclusively on the KER-065 program for Duchenne Muscular Dystrophy (DMD), which is still in the early stages of development. While the initial Phase 1 results showed promising biomarker changes, there are uncertainties regarding the safety profile due to a dose-dependent increase in hemoglobin levels.
Additionally, Keros has chosen to discontinue its cibotercept program, which might impact its pipeline diversity. The ongoing Phase 3 study of elritercept in transfusion-dependent anemia, conducted by partner Takeda, shows potential but is still in progress. These factors, combined with the company’s decision to return a significant amount of capital to shareholders, suggest a cautious approach, leading to the Hold rating as the company navigates these transitions and awaits further data on its key programs.