Kinnate Biopharma earns bulls as IPO quiet period ends

 

• As the IPO quiet period ends, Kinnate Biopharma (NASDAQ:KNTE) is enticing bullish views on Wall Street. The analysts from SVB Leerink, Piper Sandler, Wedbush, and Goldman Sachs have all weighed in with buy ratings for Kinnate. The target price ranges from $48 - $60, an upside of 26.3% - 57.9% to Friday’s close. With a 7.3% added today, the stock ends up with a gain of 4.7% since its strong market debut this month, close to the 4.9% rise iShares Nasdaq Biotechnology ETF (NASDAQ:IBB).
• Setting a price target of $52, SVB Leerink initiates the coverage on the stock with an Outperform rating. The analyst Andrew Berens cites the lead candidate, KIN002787, as having a market potential worth $2B across melanoma, non-small cell lung cancer, and colorectal cancer. 
• As opposed to current BRAF inhibitors focused on Class I mutations, KIN002787 targets BRAF Class II and Class III mutations, unveiling a high unmet need in a number of tumor types, Berens writes.
• The company is on track to initiate the Phase 1 trials of KIN003 in 1H 2022 for cholangiocarcinoma and bladder cancer, the analyst says, estimating a peak sales opportunity of $985M for the experimental therapy. 
• Predicting ‘meaningful catalysts over the next six to 18 months,’ SVB Leerink points to the firm’s ‘structure-based drug discovery platform,’ which, according to the analyst, could generate ‘fundamental and strategic value for the company.’
• Meanwhile, with an overweight rating and a price target of $60 for Kinnate, Piper Sandler analyst Tyler Van Buren pegs the market opportunity for KIN002787 at $2.5B, calling the experimental therapy a potential “first-in-class inhibitor for Class II/III BRAF mutations.”
• Wedbush analyst David Nierengarten argues that Kinnate is undervalued, citing the “high likelihood of success for the company’s lead small molecule programs in targeted oncology, despite their early development stages.” According to Nierengarten, KIN002787 will achieve “blockbuster status” with a sales potential of $1.7B by 2030.
• Both Wedbush and Goldman Sachs have the lowest price target of $48, compared to the consensus target of $52.
• https://seekingalpha.com/news/3647589-kinnate-biopharma-earns-bulls-ipo-quiet-period-ends