In a report released today, Mitchell Kapoor from H.C. Wainwright upgraded Kyverna Therapeutics, Inc. (KYTX – Research Report) to a Buy, with a price target of $5.00.
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Mitchell Kapoor has given his Buy rating due to a combination of factors, primarily centered around the potential of Kyverna Therapeutics, Inc.’s pipeline and its current financial position. The company is expected to release data from three pivotal programs by mid-2025, which could demonstrate success in treating conditions like myasthenia gravis, lupus nephritis, and stiff person syndrome. These upcoming catalysts present an attractive risk-reward profile, especially given the company’s deeply negative enterprise value.
Furthermore, the stock is trading at a significant discount to cash, with a market cap of $107M against $243M in cash reserves, providing a cash runway into 2027. This financial cushion allows investors to view the stock as a call option with potential upside if the forthcoming data is positive. The favorable early data in myasthenia gravis patients and the potential for competitive pricing of KYV-101 further support the Buy rating. Kapoor’s valuation analysis, using a discounted cash flow model, suggests a price target of $5 per share, reflecting the company’s potential growth and mitigating downside risks.
In another report released on May 14, Leerink Partners also reiterated a Buy rating on the stock with a $25.00 price target.