RBC Capital Downgrades Design Therapeutics Inc (DSGN) to Sector Perform 'pending further derisking'

RBC Capital analyst Leonid Timashev downgraded Design Therapeutics Inc (NASDAQ: DSGN) from Outperform to Sector Perform with a price target of $7.00 (from $23.00).

The analyst comments "Yesterday afternoon, DSGN reported 2Q23 earnings and the latest data cut from their MAD study of lead program in Friedreich's ataxia, DT-216, and we had a chance to catch up with mgmt regarding the updates. While we see signs of activity from DT-216 that confirms that the geneTAC platform has potential to modulate gene expression in humans, '216's ~30% mRNA changes falls short of the 50% bar we and investors were looking for, and injection site reactions limit the co's ability to move forward with the current dose. We continue to see potential with revised formulations of DT-216 that can improve upon the therapeutic window, and see early validation of the platform as a whole, but with limited near-term catalysts as development timelines are pushed out, and the remaining programs still early and high-risk, we are moving to the sidelines pending further derisking. Tgt to $7 on model updates."

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

Shares of Design Therapeutics Inc closed at $7.33 yesterday.

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