Morgan Stanley Assumes Coverage of Kymera Therapeutics (KYMR) Stock with Overweight Rating

Kymera Therapeutics, Inc. (NASDAQ:KYMR) is one of the 11 Best Mid-cap Healthcare Stocks to Buy According to Hedge Funds. Morgan Stanley analyst Judah Frommer assumed coverage of the company’s stock with an “Overweight” rating and a price objective of $70, down from $79. The research firm mentioned that the company is developing oral small-molecule approaches to target immunological pathways, which are validated by biologics. As per the firm’s analyst, healthy volunteer data with KT-621 demonstrates a potential multi-blockbuster opportunity.

Morgan Stanley Assumes Coverage of Kymera Therapeutics (KYMR) Stock with Overweight Rating

A biopharmaceutical laboratory with scientists in lab coats working on medicines.

Furthermore, the partnerships with Sanofi and Gilead tend to further validate Kymera Therapeutics, Inc. (NASDAQ:KYMR)’s drug discovery and protein degradation capabilities, added the analyst. Sanofi informed the company that KT-485/SAR447971, which is an oral, highly potent and selective development candidate targeting IRAK4 for immuno-inflammatory diseases that Kymera Therapeutics, Inc. (NASDAQ:KYMR) discovered and characterized via preclinical studies, was selected to advance into the clinical studies. After the extensive preclinical work aiding strong development potential, KT-485 continues to be prioritized for development under the companies’ existing IRAK4 collaboration, and is projected to advance into Phase 1 testing next year.

Kymera Therapeutics, Inc. (NASDAQ:KYMR) saw collaboration revenues of $22.1 million for Q1 2025 as compared to $10.3 million for Q1 2024. Furthermore, the collaboration revenues were all attributable to its Sanofi collaboration.

While we acknowledge the potential of KYMR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than KYMR and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.