Joseph Schwartz, an analyst from Leerink Partners, maintained the Hold rating on Design Therapeutics. The associated price target is $5.00.
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Joseph Schwartz has given his Hold rating due to a combination of factors surrounding Design Therapeutics’ current developments and financial standing. The company has made progress in addressing previous issues with their drug candidate, DT-216P2, for Friedreich’s ataxia by introducing a new formulation that appears to resolve safety and pharmacokinetic concerns. However, despite these advancements, there remains a clinical hold notice in the US for their ongoing study, which poses a regulatory hurdle that the company needs to overcome.
Additionally, while Design Therapeutics is actively progressing with other pipeline projects, such as a Phase 2 biomarker study for Fuchs endothelial corneal dystrophy and preclinical activities for myotonic dystrophy type 1, the financial results for the second quarter of 2025 indicate a net loss. The company ended the quarter with a substantial cash reserve, but the unchanged price target and the reiteration of a market perform rating suggest a cautious outlook. These elements collectively contribute to the Hold rating, reflecting a balanced view of potential risks and opportunities.
In another report released on August 7, RBC Capital also maintained a Hold rating on the stock with a $5.00 price target.
DSGN’s price has also changed moderately for the past six months – from $3.680 to $4.980, which is a 35.33% increase.