Goldman Sachs Backs Krystal Biotech with Buy Rating and $441 Price Target

Goldman Sachs initiated coverage on Krystal Biotech Inc. shares (Krystal Biotech) with a buy rating and a price target of $441.00, representing significant upside potential from its current trading price of $341.75.

The firm highlighted the company's impressive financial performance, including gross profit margins of 95% and revenue of $440 million over the last twelve months. Krystal Biotech's lead commercial drug Vyjuvek is the first approved treatment for dystrophic epidermolysis bullosa, a genetic skin condition.

The company's clinical pipeline includes registrational candidates KB803 and KB801, as well as early-to-mid-stage programs such as KB407 for cystic fibrosis and KB111 for Hailey-Hailey Disease. Krystal Biotech's recent second-quarter financial results showed a mixed performance, with earnings per share beating expectations but revenue falling short.