Kala Pharmaceuticals, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Yi Chen from H.C. Wainwright reiterated a Buy rating on the stock and has a $12.00 price target.
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Yi Chen has given his Buy rating due to a combination of factors including the upcoming readout of the Phase 2b CHASE trial for KPI-012, which is expected to provide key topline data by the end of September 2025. The trial is significant as it addresses persistent corneal epithelial defect (PCED), a condition with no FDA-approved treatments for all underlying causes, affecting a substantial patient population in the U.S. Additionally, the positive safety data from the high-dose cohort of KPI-012 supports the potential of this novel therapy to address multiple etiologies of PCED, enhancing its value proposition.
Furthermore, despite the company’s current financial losses, the existing cash runway is projected to sustain operations until the first quarter of 2026, although additional capital may be required within the next year. The valuation of Kala Pharmaceuticals is supported by an estimated market value of $134 million, factoring in the asset value of KPI-012 and cash reserves, while accounting for debt and preferred stock. The potential approval and commercialization of KPI-012, albeit with inherent risks, contribute to the optimistic outlook and the Buy rating.
In another report released on August 11, Oppenheimer also reiterated a Buy rating on the stock with a $15.00 price target.