The success of one of Kymera Therapeutics’ experimental treatments could mean more upside ahead for the stock, Wells Fargo found. Analyst Derek Archila upgraded shares to overweight from equal weight and upped his price target by $19 to $57, which implies more than 21% upside from Friday’s close. Shares have already significantly outperformed the broader market this year, rising nearly 90%. KYMR YTD mountain KYMR, year-to-date The analyst pointed to Kymera’s oral treatment for multiple immuno-inflammatory diseases. The drug is known as KT-621, and its Phase 1 trial data is expected to be released in the first half of 2025. He anticipates the data will likely demonstrate a “clean” safety profile, and his bull case scenario forecasts shares could trade higher by 75%. “We believe KT-621’s Phase 1 data will be a meaningful de-risking event and that the Street’s value for this program remains fairly conservative given the large end markets,” Archila said in a Monday note to clients. “If KT-621 demonstrates the profile of an ‘oral dupilumab,’ then we estimate this could be a multi-billion drug across multiple indications.” With this view, the analyst thinks the treatment provides “substantial” opportunity for sales growth at the company, especially given the success of the injectable dupilumab known as Dupixent. That treatment has brought in around $13.6 billion in sales over the past 12 months, he noted. “[W]e’d argue the potential for mkt expansion with KT-621 given the ease oral therapies can be prescribed and if efficacy/safety data mirror dupi’s in indications like [atopic dermatitis], asthma & [chronic obstructive pulmonary disease] (and that’s just a start), the rev potential could be even greater than dupi,” Archila said. The Street is largely bullish on the biopharmaceutical company, with 14 of the 18 analysts covering it having a strong buy or buy rating, per LSEG data. The remaining four analysts have a hold rating on the name. Kymera also has a consensus price target of $57.88, which reflects more than 20% upside from current levels. Shares rose more than 2% during Monday’s trading session on the heels of the upgrade.
