Kura Oncology (KURA) PT Lowered to $11 at Stifel

Stifel analyst Bradley Canino lowered the price target on Kura Oncology (NASDAQ: KURA) to $11.00 (from $18.00) while maintaining a Hold rating.

The analyst comments "We think KURA's stock is likely to remain range-bound. This week's ziftomenib (menin) partnership (LINK) provides enough cash for several years of development. The US cocommercialization also reduces the balance sheet impact if the initial R/R NPM1m AML launch in late 2025 turns out to be a cash flow negative endeavor, which would have created significant dilution risk if financings were required over 2025-2026. However, in our opinion, the timing of the deal reads to be an admission that the pivotal NPM1m data expected in 1Q25 are unlikely be commercially competitive against Syndax's (SNDX, Buy, $15.71) revumenib that is expected to reach market first (LINK). That removes any potential upside from the near-term catalyst. The 1L AML readouts that will drive the majority of the value are several years away, and the rest of the pipeline has a history of high risk. To us, patience is the strategy from here."

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