12:11 PM EDT, 06/10/2025 (MT Newswires) -- Keros Therapeutics' ( KROS ) near-term upside remains limited due to uncertainty surrounding the development of its lead drug candidate, KER-065, despite an "intriguing" pipeline and strong cash position, BofA Securities said Monday in a report.

Following a review, Keros plans to return $375 million in excess capital to shareholders and move ahead with the development of KER-065 for Duchenne muscular dystrophy. On Monday, activist shareholder ADAR1 Capital Management said the company should return $475 million to investors via a special dividend by the end of Q3.

"To be fair, there were limitations over what the board could do short of dissolving the company," BofA said.

BofA downgraded Keros stock to neutral from buy and lowered the price target to $18 from $32.

Keros shares fell 1.9% in recent Tuesday trading.

Price: 13.83, Change: -0.26, Percent Change: -1.85