Stifel Downgrades Gemini Therapeutics (GMTX) to Hold, Slashes Price Target to $2, Cites Lower Probability of Success for GEM103 and Higher Overall Risks

Stifel analyst Paul Matteis downgraded Gemini Therapeutics Inc. (NASDAQ: GMTX) from Buy to Hold with a price target of $2.00 (from $11.00), following the company's most recent corporate update.

The analyst quotes: "We are downgrading GMTX to Hold. Plans announced this morning to pursue strategic alternatives and lay off 80% of the company's workforce underlie an uncertain path for Gemini and lead asset GEM103. Our thesis on the stock had been predicated by GEM103's clinical potential in geographic atrophy, and we still believe the GEM103/CFH replacement thesis has merit and should be credibly tested in a controlled trial. That said, ever since the ph1/2 showed biomarker changes that were modest in magnitude, along with no obvious impact on GA lesion expansion, the stock has traded at low levels and has been largely out of favor in the investor community. The company has appointed Georges Gemayel, the company's Executive Chair, as Interim President and CEO to succeed Jason Meyenberg who will remain an advisor. Our new target price of $2 reflects a lower probability-of-success and overall increased risk (higher discount rate)."

For an analyst ratings summary and ratings history on Gemini Therapeutics Inc. click here. For more ratings news on Gemini Therapeutics Inc. click here.

Shares of Gemini Therapeutics Inc. closed at $1.43 yesterday.

By Vlad Schepkov | [email protected]

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