RBC downgrades Kymera Therapeutics to 'sector perform,' raises PT
KYMR•Drug profile and M&A view
Dupixent is Sanofi's SASY.PA top-selling medicine, which it markets with partner Regeneron REGN.O.
RBC adds, "we believe they could be an M&A target - perceptions around which could amplify potential upside".
The new price target represents a 3.6% downside to the stock's last close; RBC says the PT raise reflects accelerated timelines.
Valuation and analyst sentiment
The brokerage says the stock's 164% gain over the past year and its roughly $12 billion market capitalization have made the risk-reward profile more balanced.
"We believe for a company at this stage, one would need to have confidence in 30-40% additional probability-weighted upside to justify putting new money in, so we are downgrading to sector perform" - RBC.
Twenty one of 23 brokerages rate the stock "buy" or higher, 2 "hold"; their median PT is $122.5 - LSEG data.
Up to last close, the stock is up 53.4% YTD.
