BofA analyst Jason Zemansky downgraded Keros Therapeutics (KROS) to Neutral from Buy with a price target of $18, down from $32. The company announced the conclusion of its strategic review, with the board opting to move forward with KER-065 for Duchenne muscular dystrophy and to return $375M in excess capital to shareholders, the analyst tells investors in a research note. The firm says the downgrade isn’t an indictment of what it still thinks “is an intriguing” platform an pipeline. However, even acknowledging the stock’s relative valuation and “downside protection” from its strong cash position, BofA suspects near-term share upside may be limited with key insights on ‘KER-065 unlikely for some time and safety still an overhang. Investors will likely require more to re-engage at this point, contends the firm.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on KROS:
- ADAR1 says Keros needs ‘fresh perspectives in the boardroom’
- Keros Therapeutics Concludes Strategic Alternatives Review
- Keros Therapeutics to return $375M in excess capital to stockholders
- Keros Therapeutics CEO to Speak at Healthcare Conference
- Hold Rating on Keros Therapeutics Amid Strategic Review and Clinical Setbacks