Kezar Life Sciences (KZR – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Ram Selvaraju from H.C. Wainwright reiterated the rating on the stock to a Buy and gave it a $20.00 price target.
Ram Selvaraju’s Buy rating for Kezar Life Sciences is based on several factors. He views the company’s recent restructuring efforts, which are projected to extend operational runway into late 2026, as a positive step. The restructuring involves a focus on key clinical programs, a reduction in expansion cohorts for KZR-261, a workforce reduction of approximately 41%, and changes in management. These changes are expected to have a beneficial impact on the company’s finances and reduce medium-term financing overhang. Selvaraju also emphasizes the intact scientific foundation of the company, particularly the ongoing Phase 3 trial of zetomipzomib in Lupus Nephritis.
The selection of co-founder Dr. Chris Kirk as the new CEO is seen as a natural fit due to his extensive involvement in the company since its inception. Additionally, Selvaraju mentions the possibility of a shorter timeline for zetomipzomib due to Kezar’s recent partnership with Everest Medicines, which could accelerate patient enrollment in the PALIZADE trial. A shorter timeline could potentially strengthen Kezar’s position in future negotiations involving partnerships or sale of the company. Selvaraju’s Buy rating is reinforced by a discounted cash flow-driven valuation method, which projects a total firm value of $1.77 billion and a price target of $20 per share. However, he also notes several risks, such as negative data from future trials, failure to progress in development, and potential setbacks in the pipeline.
Selvaraju covers the Healthcare sector, focusing on stocks such as Bioxcel Therapeutics, Genmab, and Rockwell Med. According to TipRanks, Selvaraju has an average return of -10.1% and a 26.82% success rate on recommended stocks.
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Kezar Life Sciences (KZR) Company Description:
Kezar Life Sciences, Inc. is a clinical-stage biotechnology company, which discovers and develops novel small molecule therapeutics to treat autoimmunity and cancer. The firm specializes in the areas of protein degradation and protein secretion to discover & develop novel therapies for the treatment of serious and unmet medical needs. Its product include KZR-616, an immunoproteasome inhibitor, has completed testing in healthy volunteers. The company was founded by John Fowler, Christopher J. Kirk and Jack Taunton on February 20, 2015 and is headquartered in South San Francisco, CA.
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