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Investing.com - Canaccord Genuity lowered its price target on Fractyl Health Inc (NASDAQ:GUTS) to $6.00 from $12.00 on Thursday, while maintaining a Buy rating on the stock. The company’s shares currently trade at $1.01, with InvestingPro data showing the stock is trading significantly below its 52-week high of $3.72.
The firm’s decision follows Fractyl’s second-quarter 2025 financial report, which Canaccord described as "incremental" after recent data and financing updates. InvestingPro analysis reveals the company’s challenging financial position, with an EBITDA of -$98.85M and a weak overall financial health score. The research firm noted that key timelines for the company’s clinical programs remain on track.
Canaccord highlighted the upcoming data readout from the REMAIN-1 midpoint cohort expected in the third quarter of 2025 as a critical focus. This will provide the first controlled data from the company’s Revita program, which Canaccord considers "an important valuation inflection point."
The three-month data from the open-label cohort of the pivotal trial exceeded Canaccord’s expectations, which it believes bodes well for future results. Additional updates from the open-label cohort are planned for the fourth quarter of 2025 and first quarter of 2026.
For Fractyl’s Rejuva program, the company continues to guide toward treating patients and presenting data in 2026, with topline Phase 3 data for its six-month primary endpoint expected in the second half of 2026. Despite current challenges, analyst targets range from $4 to $10, suggesting significant upside potential. Get deeper insights and access to 12 additional ProTips for GUTS with an InvestingPro subscription.
In other recent news, Fractyl Health Inc. reported its Q2 2025 earnings, highlighting a notable increase in research and development expenses. This rise contributed to a widened net loss compared to the previous year. Despite these financial challenges, Fractyl Health managed to extend its cash runway into 2026, providing some financial stability. The company’s earnings announcement did not include any updates on mergers or acquisitions. Additionally, there were no analyst upgrades or downgrades reported in the recent period. Investors should note these developments as part of the company’s ongoing financial strategy. The focus on increased R&D spending suggests a continued commitment to innovation.
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