BofA lowers Kura Oncology price target to $29, sees buying opportunity

BofA analyst Jason Zemansky lowered the firm’s price target on Kura Oncology (KURA) to $29 from $36 and keeps a Buy rating on the shares after the company announced it had entered into an agreement with Kyowa Kirin to co-develop and commercialize lead asset ziftomenib for acute myeloid leukemia, or AML. While the firm thinks the agreement “makes strategic and financial sense,” it notes that shares were down significantly, which it believes is because of a more complicated M&A outlook and concerns about the structure and timing of the deal just ahead of key readouts. The firm, which thinks the share price decline “creates a particularly good buying opportunity,” cites accounting for the deal terms in its model for its decreased target.