Keros Therapeutics downgraded to Neutral from Buy at BofA

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.