Financial institution of America thinks Kura Oncology could be a winner in blood most cancers procedure, believing the stock could virtually triple in value. The lender initiated research coverage of the scientific-stage biotech organization with a buy ranking and $31 per share selling price concentrate on. Financial institution of America’s forecast indicates 181% upside from Thursday’s $11.04 near. Kura Oncology has a pipeline of modest molecule drug candidates for the procedure of most cancers, like ziftomenib, a specific therapy in late-stage improvement for specified kinds of acute myeloid leukemia. “Given solid extended-time period earnings opportunity as ziftomenib expands into previously treatment settings, and probably further leukemias, we see shares as significantly undervalued, presenting an beautiful prospect at current levels,” analyst Jason Zemansky wrote in a Friday be aware. “Early scientific details has been favorable, where by cure with ziftomenib monotherapy manufactured strong responses in a heavily pretreated affected person inhabitants where by outcomes are generally lousy.” Kura Oncology’s stock cost briefly rose as a great deal as 6.5% in early Friday buying and selling. Kura is down 9.2% in 2023, driven by what Zemansky mentioned are considerations in excess of Kura’s aggressive placement in opposition to rival Syndax Prescription drugs , which is also building a therapy for people with certain acute leukemias. The analyst maintained his favorable situation on Kura Oncology, having said that. “We assume the industry to be more shared vs. ‘winner-acquire all,’ with each individual asset carving out a specialized niche — dynamics common in oncology and probably ignored by a lot of,” he explained. Kura Oncology past 7 days described earnings per share of 53 cents in the 2nd quarter, 1 cent under estimates of 54 cents from analysts polled by FactSet. R & D expenditures were described to be $28.2 million, exceeding analysts’ expectations of $26.9 million. Funds on hand rose to $477 million from $438 million at the conclude of December , offering the biotech ample money to fund latest operations until eventually mid-2026, management mentioned. KURA 1Y mountain Kura Oncology stock. Still, BofA explained that outside of Kura Oncology’s focused therapy for AML, it has the probable to come to be a big selection in other most cancers remedies, as it has a tumor method concentrated on farnesyl transferase inhibitors. “Altogether, given underappreciated upside from ziftomenib and draw back security from a mostly neglected stable tumor method, we see a great deal to like about the Kura tale — with compelling possibility/reward for shares primarily at present concentrations,” Zemansky reported. — CNBC’s Michael Bloom contributed to this report.
