On Monday, Truist Securities adjusted its price target for Keros Therapeutics (NASDAQ:KROS), a clinical-stage biopharmaceutical company, reducing it significantly to $43.00 from the previous target of $100.00. The stock, currently trading at $17.03, has experienced a challenging period with a 63% decline over the past six months according to InvestingPro data. Despite this change, the firm has decided to maintain its Buy rating on the stock.
The adjustment follows an update to the analyst's financial model, which now incorporates the latest developments from Keros Therapeutics. The firm believes that the stock may experience sideways trading in the near term but continues to recommend a Buy rating based on several factors.
The analyst notes that the current stock price does not fully factor in the recent collaboration with Takeda Pharmaceutical Company (NYSE:TAK), suggesting that the stock is trading close to its cash value. Additionally, there is anticipation for the potential of over $2 billion in opportunities for elirtecpt, a treatment for anemia, with expectations that Takeda will successfully execute its plans.
Furthermore, while uncertainties around pulmonary arterial hypertension (PAH) treatments prevent the firm from assigning value to this aspect of Keros's portfolio, feedback from key opinion leaders has been cautiously optimistic. This could lead to positive developments if the risk/reward profile for the 1.5mg/kg dosage proves favorable and the program advances.
Lastly, the analyst highlights the potential value in KER-065, a product candidate in Keros's pipeline with possible applications in rare diseases and obesity. Data for KER-065 is expected to be released in the first quarter of 2025, which could provide additional optionality for the company's stock.
As of the latest update, Keros Therapeutics is positioned with a new price target of $43.00, reflecting both the challenges and opportunities identified by Truist Securities. With analyst targets ranging from $23 to $100, and a consensus recommendation leaning toward Buy, the market maintains a cautiously optimistic outlook.
The Buy rating stands as the firm's vote of confidence in the company's prospects despite the reduced price target. InvestingPro subscribers can access detailed analyst forecasts and comprehensive financial health metrics to make more informed investment decisions.
In other recent news, Keros Therapeutics has faced significant adjustments in its stock ratings following developments in its clinical trials. The clinical-stage biopharmaceutical company recently ceased dosing in the mid-to-high dose cohorts of its Phase 2 TROPOS study for the drug cibotercept due to challenges differentiating its efficacy and safety profile.
Analyst firm Oppenheimer reduced its price target for Keros shares to $63.00 but maintained its Outperform rating. Similarly, H.C. Wainwright maintained a Buy rating but reduced the price target from $100 to $47. Jefferies also lowered its price target to $23.00 but kept its Buy rating. In contrast, TD Cowen and BTIG downgraded their ratings from Buy to Hold and Neutral respectively.
Despite these changes, Keros Therapeutics has entered a substantial licensing agreement with Takeda Pharmaceutical (TADAWUL:2070) Company for the development of elritercept, a move positively received by various analyst firms. The company also completed patient enrollment for its Phase 2 TROPOS trial and appointed Dr. Yung H. Chyung as its new Chief Medical (TASE:PMCN) Officer.
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