Design Therapeutics' Modified DT-216 May Have Potential, But Analyst Awaits Further Developments
Portfolio Pulse from Vandana Singh
RBC Capital Market has downgraded Design Therapeutics Inc (NASDAQ:DSGN) from Outperform to Sector Perform with a price target of $7, down from $23. This follows the company's announcement of initial results from its Phase 1 clinical trial of DT-216 in patients with Friedrich ataxia and plans to reformulate the drug due to injection site reactions. RBC analysts see potential in the modified versions of DT-216 but are adopting a wait-and-see approach due to extended development timelines and inherent risks.
August 15, 2023 | 7:32 pm
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Design Therapeutics Inc's stock has been downgraded by RBC Capital Market due to uncertainties in the development of its drug, DT-216. The price target has been reduced from $23 to $7.
The downgrade by RBC Capital Market and the reduction in price target from $23 to $7 indicates a lack of confidence in the company's ability to successfully develop and market its drug, DT-216. This is likely to negatively impact the company's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100