Jefferies cuts Kodiak Sciences stock price target on valuation review

Jefferies adjusted its price target for Kodiak Sciences Inc. (KOD) to $112, down from $156, while keeping its Buy rating. The company's stock has risen 105% in the past year, reaching $90.25, but analysts believe it may be overvalued. The DAYBREAK trial for Zenkuda showed aflibercept-like efficacy, clean safety, and Q24W dosing in 54% of patients under strict retreatment criteria, positioning it as a potential best-in-class treatment.

However, the company's Phase 3 trials for KSI-501 and ALTO, which test the IL-6 thesis, remain crucial for commercial execution. Kodiak Sciences reported a loss of $1.05 per share in Q2, surpassing analyst estimates, primarily due to increased R&D expenses for PEAK, PINNACLE, and Phase 3 studies. Goldman Sachs rated Kodiak Sciences as Neutral with a $36 target, while H.C.

Wainwright maintained a Buy rating with a $58 target, emphasizing the importance of the Phase 3 DAYBREAK trial focusing on wet AMD treatment-naïve patients.