SNDX - BofA starts Kura at buy cites revenue potential of lead drug ziftomenib

2023-08-11 14:55:42 ET

BofA Securities has initiated coverage of Kura Oncology ( NASDAQ: KURA ) with a buy rating, commenting that it sees the stock as undervalued given the long-term revenue potential of its lead drug candidate ziftomenib, which is being developed as a treatment for acute myeloid leukemia.

The investment bank said it believes investors are putting too much emphasis on ziftomenib's early safety signal data, which appears to give a rival drug being developed by Syndax ( SNDX ) called revumenib a "strong competitive advantage."

BofA said it believes ziftomenib could end up being a "best-in-class" treatment and that the market would support more than one product, "with each asset carving out a niche." It added that this was a common scenario in oncology and one that was likely being "overlooked by many."

The bank said it sees ziftomenib as having "solid long-term revenue potential" as its expands into early earlier treatment settings and possibly the treatment of other types of leukemia.

BofA set its price target for the stock at $31. Kura released its Q2 earnings results on Aug. 3.

More on Kura:

Kura Oncology, Inc. ( KURA ) Q2 2023 Earnings Call Transcript

Kura Oncology GAAP EPS of -$0.53 beats by $0.01

Kura Oncology: Targeted AML Therapy Continues To Deliver

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