H.C. Wainwright on Thursday moved Korro Bio Inc. (NASDAQ:KRRO) from a Neutral rating to Buy and set a $20.00 price target. At the time of the announcement the stock was trading at $11.69 and had posted an 11.23% gain over the prior week according to InvestingPro figures.
The upgrade followed Korro’s recent Analyst Day presentation, during which the company introduced KRRO-121. The program is described as a liver-targeted, subcutaneous RNA editing therapeutic intended to stabilize glutamine synthetase and preserve the liver’s capacity to clear ammonia under disease conditions.
In its research note, H.C. Wainwright underscored preclinical risk-reduction already observed for KRRO-121, pointing to repeatable reductions in ammonia across multiple animal models. The firm also called attention to clean repeat-dose primate findings and noted liver-selective uptake exceeding 90% in preclinical studies, which it viewed as supportive of the program’s translational potential.
H.C. Wainwright has incorporated KRRO-121 into its valuation framework for hyperammonemia, assigning the asset a 20% probability of approval and estimating peak global sales of $2 billion. Those assumptions underpin the new $20 price target the firm published with the upgrade.
The research house made clear that KRRO-121 represents an independent development path from Korro’s KRRO-110 program, emphasizing that the two programs address different disease targets and employ different delivery approaches.
Separately, other sell-side firms adjusted their views following the KRRO-121 disclosure. Piper Sandler upgraded Korro Bio to Overweight and lifted its price target from $11.00 to $30.00, citing the new program and its potential applications in Urea Cycle Disorders and Hepatic Encephalopathy. Chardan Capital Markets raised its rating to Buy with a $15.00 target, highlighting a positive shift in focus toward KRRO-121. Cantor Fitzgerald also moved to Overweight and set a $21.00 price target, pointing to promising preclinical data and market opportunity.
Not all firms moved to upgrade. Raymond James and William Blair maintained Market Perform ratings. Raymond James reiterated the challenges faced by patients with Urea Cycle Disorders, while William Blair described the preclinical findings as an incremental positive for the company. The firms’ stances signal continued scrutiny as Korro attempts to rebound from earlier setbacks in its AATD program.
On the financial side, InvestingPro data indicate Korro Bio is burning cash at a rapid clip, although the company reported a current ratio of 6.71, a level that suggests solid short-term liquidity. InvestingPro also noted a wide range of analyst price targets for the stock, spanning $7 to $22, and flagged the company as potentially undervalued on certain measures available to subscribers.
Summary
H.C. Wainwright upgraded Korro Bio to Buy with a $20 price target after the company unveiled KRRO-121, a liver-targeted RNA editing candidate that has shown repeatable ammonia reductions in preclinical models and strong liver-selective uptake. The firm assigned a 20% approval probability and $2 billion peak sales to the asset. Other brokerages revised ratings and targets in response to the program, while Korro’s balance sheet shows fast cash burn but a current ratio indicating near-term financial stability.
Key points
- H.C. Wainwright upgraded Korro Bio from Neutral to Buy and set a $20.00 price target, citing KRRO-121’s preclinical profile and incorporating a 20% probability of approval with $2 billion peak sales in its model.
- Several brokerages adjusted ratings: Piper Sandler to Overweight ($30 PT), Chardan to Buy ($15 PT), and Cantor Fitzgerald to Overweight ($21 PT); Raymond James and William Blair stayed at Market Perform.
- Financially, Korro is described as burning cash quickly but reporting a current ratio of 6.71, suggesting adequate short-term liquidity; analyst targets range from $7 to $22 per InvestingPro.
Risks and uncertainties
- KRRO-121 remains at a preclinical stage, and H.C. Wainwright models a 20% probability of approval - the asset’s clinical and regulatory path is uncertain.
- Korro is consuming cash rapidly, a factor that could pressure operations if not matched by financing or milestone progress; this affects equity holders and potential funding markets.
- Market and clinical challenges for target indications such as Urea Cycle Disorders are acknowledged by some brokers, indicating persistent clinical and commercial hurdles.