Chardan Capital Markets has upgraded Korro Bio Inc. (KRRO) from Neutral to Buy and raised its price target to $15.00 from $7.00, a level the firm says implies roughly 28% upside from the stocks most recent price of $11.69. Chardan noted that this valuation aligns with InvestingPros Fair Value assessment, suggesting the shares may currently trade below fair value.
The rating change centers on Korros shift of resources toward KRRO-121, an ADAR RNA editing candidate that is scheduled to begin clinical testing in late 2026. The company adopted the new focus after encountering setbacks with its earlier KRRO-110 program in alpha-1 antitrypsin deficiency (AATD). Chardan described the refocus as a reset for the company and urged investors to monitor forthcoming program milestones.
Korro is a small-cap biotech with a market capitalization of approximately $110 million. The stock has been volatile but has risen about 46% so far this year. Chardans analysis emphasizes both the near-term program timeline and the structural differences in KRRO-121s delivery chemistry compared with the prior program.
Specifically, Chardan highlighted that KRRO-121 employs GalNAc conjugation to direct the therapeutic to liver hepatocyte cells, in contrast to the lipid nanoparticle - LNP - formulation that Chardan says appeared to be linked to the unfavorable results observed with KRRO-110. The research firm also noted that KRRO-121 may require only 20% to 25% RNA editing activity to preserve ammonia clearance pathways in patients with urea cycle disorders - a potentially modest editing threshold relative to some other gene editing approaches.
On the balance sheet front, InvestingPro data cited by Chardan indicates Korro currently holds more cash than debt, though the company is consuming cash at a rapid rate - a material consideration for a preclinical-stage biotech that lacks revenue-generating products.
Beyond the near-term targets for KRRO-121, Chardan expressed conviction in the wider applicability of Korros ADAR RNA editing platform. The firm suggested the platform could extend beyond correcting single point G-A mutations to engineering protein variants for diseases that cannot be addressed with alternative modalities, underscoring potential longer-term strategic value if the approach proves translatable.
Chardan also pointed to the clinical development nuances for urea cycle disorder - UCD - and related indications. UCD leads to elevated blood ammonia because patients cannot properly break down dietary protein, and Chardan observed that evidence of efficacy might be detectable in healthy volunteers subjected to a high-protein challenge, given KRRO-121s mechanism targeting ammonia detoxification pathways.
Other recent analyst activity around Korro has been mixed. Cantor Fitzgerald upgraded Korro from Neutral to Overweight and set a $21 price target, citing encouraging preclinical data and the companys strategy for KRRO-121, which targets urea cycle disorders and hepatic encephalopathy. Raymond James and William Blair maintained Market Perform ratings; William Blair characterized the KRRO-121 preclinical readouts as an "incremental positive" for a company working to recover from the KRRO-110 setback.
Jones Trading reiterated a Hold rating following Korros Virtual Analyst Day, where the company detailed KRRO-121s proposed mechanism to lower ammonia levels. The RNA editor is intended to stabilize Glutamate Synthetase, an enzyme that detoxifies ammonia independently of the urea cycle.
Overall, the coverage shift from Chardan and other firms has refocused attention on KRRO-121 as Korros lead program and on the potential of its ADAR RNA editing technology. Balance sheet dynamics and ongoing cash burn remain key financing risks as the company advances toward first-in-human trials in late 2026.