Krystal Biotech's Price Target Revised to $182 Amid Concerns Over Short-Term Growth Forecasts

BofA analyst Alec Stranahan has lowered Krystal Biotech's price target to $182 from $192, while maintaining a Buy rating. Concerns over short-term growth forecast due to management's expectation of third-quarter revenue falling short of the second quarter, primarily due to patient pauses. The firm has revised its financial model, leading to a reduced forecast for immediate Vyjuvek revenue and delayed launches for KB407 and KB408.

Krystal Biotech, Inc. (NASDAQ: KRYS) reported its financial results for the second quarter ending June 30, 2025, highlighting strong performance and significant milestones in its pipeline. The company recorded $96.0 million in VYJUVEK net product revenue for the quarter, with a gross margin of 93% [1]. This quarter also saw notable approvals and expansions, including the Japanese approval of VYJUVEK for DEB patients from birth, and the initiation of several clinical trials.

Krystal Biotech's balance sheet remained robust, ending the quarter with $820.8 million in cash and investments. The company continues to maintain strong access for VYJUVEK in the U.S. and is working towards European launches in Germany and France. Additionally, the company has made progress in its respiratory and oncology pipelines, with enrollment in studies for KB407 and KB707, respectively.

However, BofA analyst Alec Stranahan has lowered Krystal Biotech's price target to $182 from $192, while maintaining a Buy rating. Stranahan cited concerns over short-term growth forecasts due to expected third-quarter revenue falling short of the second quarter, primarily due to patient pauses. The firm has revised its financial model, leading to a reduced forecast for immediate Vyjuvek revenue and delayed launches for KB407 and KB408 [2].

Despite the challenges, Krystal Biotech continues to demonstrate a strong pipeline and a robust financial position. The company's focus on expanding access to its products and advancing its clinical trials positions it for future growth.

References:
[1] https://ir.krystalbio.com/news-releases/news-release-details/krystal-biotech-announces-second-quarter-2025-financial-and
[2] https://www.bofa.com/