In a report released today, Charles Zhu from LifeSci Capital maintained a Buy rating on Kura Oncology, with a price target of $24.00.
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Charles Zhu has given his Buy rating due to a combination of factors including the potential of Kura Oncology’s drug candidate KO-2806 in treating clear cell renal cell carcinoma (ccRCC). The upcoming presentations at ESMO 2025, particularly the combination of KO-2806 with cabozantinib, are seen as significant opportunities to validate the efficacy and safety of this treatment approach. Despite the historical challenges faced by farnesyltransferase inhibitors (FTIs), the mechanistic similarities with mTORC1 inhibitors and the potential for better tolerability make KO-2806 an intriguing candidate.
Furthermore, the potential for KO-2806 to achieve a 40% objective response rate (ORR) in combination with cabozantinib is promising, especially when compared to existing treatments. The market has largely overlooked this opportunity, and with Kura Oncology trading at a low enterprise value, there is a substantial upside potential if the clinical data supports the efficacy of KO-2806. These factors contribute to the optimistic outlook and the Buy rating assigned by Charles Zhu.
According to TipRanks, Zhu is an analyst with an average return of -0.8% and a 45.97% success rate. Zhu covers the Healthcare sector, focusing on stocks such as Nuvalent, Kura Oncology, and Merus.
In another report released on August 21, Leerink Partners also reiterated a Buy rating on the stock with a $23.00 price target.