Shares of Kymera Therapeutics ( NASDAQ: KYMR ) had gained 15.6% to $26.30 in Tuesday mid-day trading after Goldman Sachs research initiated the clinical-stage biopharmaceutical company with a buy rating, citing an attractive risk reward.
Goldman Sachs analysts Chris Shibutani, Stephen Sloan, Daniel Ziment and Chenyang Gu gave the company a price target of $40, which represents a 75.8% upside to KYMR's last closing price of $22.75.
Watertown, Mass.-based Kymera's ( KYMR ) technology is aimed at harnessing the body's natural protein degradation system to selectively degrade disease causing proteins. Its lead drug candidate, KT-474, is being developed to treat autoimmune skin diseases. The company shares rights for KT-474 with Sanofi ( SNY ).
"We see an attractive entry point in shares at current levels as we believe the market is taking an overly pessimistic view of the outlook for lead asset KT-474...," the Goldman Sachs analysts said in a research note late on Tuesday.
KYMR is set to report its Q2 2022 results on Aug. 9.
"We see Kymera as uniquely positioned as a leading player in the emerging field of targeted protein degradation and look for the company to successfully advance multiple pipeline assets as potential novel, first-in-class therapeutics addressing a wide range of serious diseases," the analysts added.
Goldman Sachs' buy rating on KYMR matches the Wall Street average rating . However, Seeking Alpha's Quant system, which consistently beats the market , rates the stock hold .
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Kymera Therapeutics stock jumps ~16% after Goldman Sachs starts coverage with buy