JP Morgan upgrades Kodiak Sciences to Neutral, raises PT to $15.

JP Morgan upgrades Kodiak Sciences to Neutral, raises PT to $15.

JP Morgan has upgraded Kodiak Sciences (NASDAQ: KOD) to a Neutral rating and raised its price target to $15, effective December 2026. The upgrade comes as the biotechnology company enters a "catalyst-rich period" with pivotal data expected for several key products, including tarcocimab, KSI-501, and KSI-101 [3].

The upgrade reflects JPMorgan's view that Kodiak Sciences is more likely to perform in line with the broader biotech market. The firm noted that the company's strong liquidity, with a current ratio of 4.62, and the potential for clear clinical wins in upcoming pivotal studies could shift market sentiment [3].

Despite the upgrade, JPMorgan emphasized that market expectations for the forthcoming data releases are still evolving. The company will need to demonstrate success in its clinical trials to meaningfully change market sentiment. Valuation is not an issue for a constructive rating, but clinical trial results will be crucial for further stock appreciation [3].

Kodiak Sciences recently reported its Q2 2025 financial results, showing a GAAP net loss of $54.3 million, which missed analyst estimates but beat the consensus by $0.04 [2]. The company's cash position remains strong, with $104.2 million in reserves, supporting operations through 2026 [1].

The company's shares soared following an upgrade from Jefferies, which raised its price target to $20 from $6, citing progress in the company's clinical pipeline and the potential of tarcocimab in treating retinal diseases [1]. Analysts at Jefferies noted that Kodiak Sciences' lead drug candidate, tarcocimab, demonstrated positive results in pivotal studies, and KSI-501 and KSI-101 also showed encouraging progress [1].

Kodiak Sciences continues to advance its clinical pipeline, with multiple Phase 3 readouts expected between the first quarter of 2026 and the first quarter of 2027. The company's KSI-101 Phase 1b data in MESI patients showed rapid anatomical improvements and over 90% of patients achieving dryness by week 8 [1].

References:
[1] https://www.stocktitan.net/news/KOD/kodiak-sciences-announces-recent-business-highlights-and-second-3gycq350yqmy.html
[2] https://www.nasdaq.com/articles/kodiak-sciences-beats-q2-loss-estimates
[3] https://za.investing.com/news/analyst-ratings/jpmorgan-upgrades-kodiak-sciences-stock-rating-to-neutral-from-underweight-93CH-3838825