Guggenheim downgrades Keros Therapeutics to 'neutral'

Keros Therapeutics

16/12/2024 17:26

** Brokerage Guggenheim downgrades drug developer Keros
Therapeutics  KROS.O  to "neutral" from "buy"; removes PT on
stock, previous PT was $102
    ** Says brokerage is "surprised" and "disappointed" after co
paused higher doses of its experimental high blood pressure
treatment "cibotercept" in a mid-stage study after reports of
adverse effects on Thursday
    ** Shares were down ~73% at close on Thursday following the
announcement 
    **Brokerage sees co and stock having a difficult path ahead,
at least in near term
    ** Says exact reason for occurrence will likely wouldn't be
clear until topline data is released in Q2 2025
    ** Also lowers cibotercept's probability of success, but
still sees significant upside potential for the treatment if it
demonstrates efficacy similar to Merck's  MRK.N  sotatercept 
    ** 11 of 15 brokerages rate the stock "buy" or higher, and
four "hold", with a median PT of $42
    ** Including session moves, stock has fallen ~52% YTD

 (Reporting by Neil J Kanatt in Bengaluru)
 ((Neil.JKanatt@thomsonreuters.com;))