Shares of Krystal Biotech, Inc. (NASDAQ:KRYS) soared to a new 52-week high during trading on November 3, 2023, following an upgrade from TD Cowen. The firm raised its price target for the stock from $202.00 to $306.00, maintaining a buy rating. During the session, Krystal Biotech’s shares peaked at $267.48 before closing at $261.41, with a trading volume of 349,859 shares.
Analysts’ optimism surrounding Krystal Biotech has been echoed by several other research firms. On October 17, Guggenheim set a target price of $224.00 with a buy rating. Following this, Chardan Capital raised its price objective from $216.00 to $220.00 on November 4, also issuing a buy recommendation. Additionally, Zacks Research upgraded the company from a hold rating to a strong buy on January 7. Most notably, HC Wainwright reissued a buy rating, increasing its target price for the stock from $240.00 to $310.00.
With this recent activity, the stock now holds a consensus rating of “Buy” among analysts, with a consensus price target of $260.50, according to data from MarketBeat. A total of one analyst has rated the stock as a strong buy, nine analysts have issued a buy rating, and one has given it a hold rating.
Institutional Investors Make Strategic Moves
Recent changes in institutional holdings have further impacted Krystal Biotech’s stock dynamics. In the second quarter, Edgestream Partners L.P. acquired a new position valued at approximately $2.7 million. The State of New Jersey Common Pension Fund D increased its holdings by 45.2%, now owning 15,033 shares valued at $2.07 million after purchasing an additional 4,682 shares.
Furthermore, Voya Investment Management LLC lifted its stake by 46.7% in the third quarter, acquiring 93,908 shares valued at $16.58 million. Another notable increase came from UBS AM, which expanded its position by 173.8% in the first quarter, now holding 575,506 shares worth $103.76 million. Overall, institutional investors now own an impressive 86.29% of Krystal Biotech.
Strong Earnings Performance Fuels Investor Confidence
In addition to the stock’s upward trajectory, Krystal Biotech reported robust financial results on November 3. The company announced earnings of $2.66 per share (EPS), significantly surpassing analysts’ consensus estimate of $1.12 by $1.54. The company also achieved a return on equity of 19.36% and a net margin of 53.30%, with revenues of $97.80 million for the quarter, exceeding expectations of $93.72 million.
Looking ahead, analysts predict that Krystal Biotech will post an EPS of $6.14 for the current fiscal year, reinforcing positive sentiment surrounding the company.
Based in Pittsburgh, Pennsylvania, Krystal Biotech is a clinical-stage biotechnology firm focused on developing gene therapies for rare dermatological diseases. Its lead product candidate, KB103, aims to deliver a functional COL7A1 gene to patients with dystrophic epidermolysis bullosa (DEB), a severe and often debilitating skin condition. The company’s innovative approach targets the genetic causes of inherited skin disorders, addressing significant unmet medical needs in the field.
As Krystal Biotech continues to gain traction in the market, both analysts and investors remain optimistic about its future potential.
