Wall Street Analysts Just Trimmed Price Targets for These 10 Stocks

04. KALA BIO, Inc. (NASDAQ:KALA)

Price Reaction after the Price Target Cut: -0.13(-1.95%)

On May 20, H.C. Wainwright revised down the 12-month price target for KALA BIO, Inc. (NASDAQ:KALA) from $21 to $18, despite maintaining a Buy rating on the stock. This adjustment followed the company’s first-quarter financial report earlier in the week, which disclosed a net loss of $11.8 million, or $4.20 per share, surpassing the expected loss of $8.8 million. Despite the financial setback, KALA BIO, Inc. (NASDAQ:KALA) management has conveyed that the Phase 2b CHASE trial for KPI-012, designed to address persistent corneal epithelial defect (PCED), is progressing according to plan, with topline results anticipated by the end of 2024. KPI-012, an innovative therapy based on mesenchymal stem cell secretome (MSC-S), integrates various biological factors with the potential to target the multiple causes of PCED.

The absence of FDA-approved treatments covering all underlying causes of PCED underscores the significance of KPI-012, which also holds promise for addressing Limbal Stem Cell Deficiency (LSCD) and other corneal ailments. Additionally, KALA BIO, Inc. (NASDAQ:KALA) is engaged in preclinical research on KPI-014, aimed at inherited retinal degenerative diseases such as retinitis pigmentosa and Stargardt disease. The company’s valuation currently stands at $91 million. With an estimated 5.0 million shares outstanding by the close of the first quarter of 2025, the valuation per share amounts to approximately $18. Hence, despite the reduction in the price target, the Buy rating remains intact based on these prospects.