Wolfe upgrades Kymera Therapeutics, calls ‘great long-term trade’

Wolfe Research analyst Andy Chen upgraded Kymera Therapeutics to Outperform from Peer Perform with a $65 price target. The timing of STAT6 readout in 2025 is closer and the stock has “became safer to trade” now that IRAK4 catalysts are delayed, the analyst tells investors in a research note. In a cross-product comparison, Kymera’s STAT6 degrader is better than Recludix’s inhibitor, says the firm. Wolfe believes Kymera’s IRAK4 trial expansion in July not only boosts confidence on the probability of success, but also helps Kymera “by delaying two relatively scary catalysts in exchange for a safer STAT6 catalyst.” The firm thinks the current share price at $47 implies Street expectation of peak STAT6 share of 9% in atopic dermatitis and probability of success of 30%, further implying a $145 per share fair value assuming STAT6 approval. It calls Kymera a “great long-term trade” given the quality of the company’s platform, and likely additional value in TYK2 degrader by the second half of 2025.