Raymond James has reiterated its Market Perform rating on Korro Bio Inc. (NASDAQ:KRRO), according to a note from the firm.
Korro’s shares were trading at $10.74 and the company carried a market capitalization of $101.14 million at the time of the note. InvestingPro Fair Value estimates indicate the stock may be undervalued, even as the share price shows a mix of momentum and retrenchment - up 34.08% year-to-date but down 70.26% over the past year.
The research communication included a first-person account from the mother of a patient with a urea cycle disorder (UCD), detailing the regimen required to manage the disease. The description stressed strict dietary controls, medication adherence, frequent hospital contacts and constant vigilance against hyperammonemic crises. Despite receiving standard-of-care therapies, the child ultimately required a liver transplant at age five.
On the scientific front, Raymond James outlined preclinical work on KRRO-121. In vitro studies in UCD-derived human hepatocytes reportedly showed stabilization of glutamine synthetase (GS) with editing levels in the 20-25% range. The research note said Korro can attain higher editing efficiencies but is focusing its development strategy on optimization rather than pursuing maximal editing rates.
Animal data were also discussed. In OTC-deficient mice dosed with a mouse-optimized version of KRRO-121, investigators observed improved clearance of ammonia and a rise in plasma glutamine that did not reach statistical significance. The note suggested these signals could imply the potential for dietary liberalization in UCD patients if translatable to humans - a change that would differentiate a successful therapy in the UCD treatment landscape.
Additional preclinical evidence came from a humanized liver mouse model. Following an ammonia challenge, KRRO-121-treated animals exhibited statistically significant reductions in both basal ammonia and post-challenge ammonia compared with vehicle controls. The treated cohort also showed roughly a 25% increase in GS protein levels.
From a balance-sheet perspective, InvestingPro data referenced in the note showed Korro Bio holding more cash than debt and reporting a strong current ratio of 6.71. At the same time, the company is burning cash rapidly, recording a negative EBITDA of $89.61 million. Analysts cited in the note do not forecast profitability this year but do expect sales growth over time. The research package includes a Pro Research Report with 12 additional ProTips, available to subscribers.
Several other broker updates were summarized alongside the Raymond James action. Cantor Fitzgerald upgraded Korro’s rating to Overweight and set a price target of $21.00, citing encouraging preclinical data and market potential for KRRO-121, which targets urea cycle disorders and hepatic encephalopathy. Clear Street raised its price target to $10.00 from $7.00 and maintained a Hold rating after the company’s Analyst Day discussion of the lead preclinical program.
Jones Trading reiterated a Hold rating and highlighted the specifics presented about KRRO-121, described as an RNA editor intended to lower ammonia levels in patients. William Blair also reiterated a Market Perform rating, noting the preclinical readouts provided incremental positives for KRRO-121 despite earlier setbacks with KRRO-110.
Taken together, the analyst commentary underscores Korro Bio’s continued focus on advancing KRRO-121 and the degree to which the program’s preclinical performance and the company’s financial runway are guiding near-term market views.
Note: The company name, program names, numerical metrics and analyst ratings referenced above reflect the contents of the research note and accompanying data cited in that note.