Clear Street raised its price target on Krystal Biotech (NASDAQ:KRYS) to $338.00 from $288.00 and maintained a Buy rating, citing increased investor interest in the company’s clinical pipeline. At the time of the move the stock was trading around $281.53, placing the new target roughly 20% above the current price and with the shares trading near a 52-week high of $295.98.
The research firm highlighted KB801, Krystal’s candidate for Neurotrophic Keratitis (NK), as a central driver of the higher valuation. KB801 is being developed for an NK market where the incumbent product reaches roughly $1 billion in annual sales. Based on that commercial context and other attributes of the program, Clear Street raised its peak sales estimate for KB801 to $2.0 billion by 2040 - up from a prior $1.3 billion forecast - and increased its probability of technical and commercial success to 50% from 40%.
In explaining its updated assumptions, Clear Street pointed to multiple program-specific factors it views as supportive: a validated mechanism of action, early validation of the viral vector’s performance in ocular delivery, a development pathway that could be relatively rapid and cost-efficient, and what the firm described as a "clearly superior" target product profile versus the current standard of care. These elements underpin the larger revenue and success-rate inputs in Clear Street’s model.
Clear Street also flagged the role of Vyjuvek in Krystal’s recent market performance. The firm noted that stability and growth in Vyjuvek sales have supported positive trading trends for the company in recent quarters.
On the commercial front, Krystal reported preliminary fourth-quarter 2025 net revenue for Vyjuvek in the range of $106 million to $107 million, and preliminary full-year 2025 revenue of $388 million to $389 million. Those preliminary figures sit marginally below H.C. Wainwright’s estimates of $108 million for the quarter and $390 million for the year; H.C. Wainwright has nonetheless reaffirmed a Buy rating and a price target of $310.00.
Other broker actions reflect a broadly constructive view among analysts. TD Cowen increased its price target to $306.00 and maintained a Buy rating following encouraging interim Phase 1/2 data for Krystal’s cystic fibrosis treatment. Cantor Fitzgerald continues to rate the stock Overweight and has pointed to Krystal’s submission of the CORAL-3 study design to the FDA as a notable program milestone. Bank of America Securities raised its price target to $288.00, emphasizing ongoing upside for Vyjuvek across U.S. and international markets. Jefferies raised its target to $310.00 after what it characterized as strong data from the CORAL-1 cystic fibrosis cohort-3, highlighting significant transduction rates in treated patients.
Collectively, these analyst moves and Krystal’s preliminary revenue disclosures underscore a favorable tone from market participants around the company’s strategic initiatives and pipeline progress. Clear Street’s decision to materially increase the KB801 peak-sales estimate and to raise the program’s likelihood of success forms the core rationale for its higher stock target.
While the updated models and peer commentary reflect optimism, they are tied explicitly to the company’s clinical development and commercial execution as reported by Krystal and interpreted by analysts.