Kezar Life Sciences: Mid-Term Growth Levers Heavily Discounted, Reduce To Hold

Nov. 16, 2022 1:23 AM ETKezar Life Sciences, Inc. (KZR)
Zach Bristow profile picture
Zach Bristow
2.5K Followers

Summary

  • Following a shift in market sentiment, I've narrowed my rating for Kezar Life Sciences from buy to hold.
  • The market has heavily discounted KZR's growth catalysts of clinical trial updates and regulatory tailwinds.
  • Market data also suggest a lack of buying support with long-term trends likely to continue.
  • Net-net, I rate KZR a hold on a $7.45 price target.

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Investment Summary

The investment debate for Kezar Life Sciences, Inc. (NASDAQ:KZR) has changed drastically since my last rating on the company. Clinical trial and regulatory tailwinds were previous catalysts for KZR. However, the market has shifted to numbers and

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Data: Upata

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Data: KZR Q3 FY22 10-Q

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Note: Red line = SPDR Portfolio S&P 500 Growth ETF; Blue line = SPDR Portfolio S&P 500 Value ETF. Both are benchmarked as proxies for the growth and value factors, respectively. (Data: Updata)

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Data: KZR SEC Filings

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Note: Fund ownership excludes ETFs due to cross ownership and indexing effect. (Data: Refinitiv Eikon, HB Insights)

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Data: Updata

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Data: Updata

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Data: Updata

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Data: Refinitiv Eikon

This article was written by

Zach Bristow profile picture
2.5K Followers
Buy side equity portfolio strategist serving mandates throughout EU/US/APAC. Helping you position your portfolios for the future is my top priority. Shoot me a message to discuss trade ides or talk portfolio construction. Disclaimer:The opinions expressed in all articles do not constitute as investment advice. Please remember to conduct your own due diligence.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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