Chardan Capital analyst Gbola Amusa reiterated a Buy rating on Krystal Biotech Inc (KRYS) today and set a price target of $75. The company’s shares opened today at $37.83, close to its 52-week high of $39.95.
Amusa noted:
“We view the receipt of the FDA Therapy (RMAT) designation as a significant positive for the timelines on KB103. This news follows KB103 receiving the EMA Priority Medicines (PRIME) designation on 29 March. As we have noted, Krystal’s market cap is modest relative to companies with PRIME and/or RMAT/BTD designations. We again reiterate: We would not be surprised if Krystal’s market cap crosses $1 billion by 2020E. On today’s news, we update our detailed model, moving the probability of KB103 launch from 55% to 67%, leading to an increase in our 2030E KB103 sales estimate from $492.1 mm to $596.5 mm. With a reduction in our WACC from 12.4% to 11.9%, these changes lead to a 30% KRYS PT target increase, from $57.50 to $75. has demonstrated impressive wound closure data (albeit in small numbers of patients) in the GEM-1 and GEM-2 studies.”
According to TipRanks.com, Amusa is a 5-star analyst with an average return of 19.4% and a 51.9% success rate. Amusa covers the Healthcare sector, focusing on stocks such as Logicbio Therapeutics Inc, Voyager Therapeutics Inc, and Axovant Gene Therapies.
Krystal Biotech Inc has an analyst consensus of Strong Buy, with a price target consensus of $48.88, which is a 29.2% upside from current levels. In a report issued on June 14, H.C. Wainwright also reiterated a Buy rating on the stock with a $38 price target.
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Based on Krystal Biotech Inc’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $4.11 million. In comparison, last year the company had a GAAP net loss of $2.15 million.
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Krystal Biotech, Inc. is a gene therapy company, which engages in developing and commercializing treatment for patients suffering from dermatological diseases. It developed a gene therapy platform, which company refer to as the Skin TARgeted Delivery platform, or STAR-D platform, that consists of a patent pending engineered viral vector based on herpes simplex virus 1, or HSV-1, and skin-optimized gene transfer technology, to develop off-the-shelf treatments for dermatological diseases for which company believe there are no known effective treatments. The company was founded by Suma M. Krishnan in December 2017 and is headquartered in Pittsburgh, PA.
