DermTech downgraded to Hold from Buy at Lake Street

Lake Street analyst Thomas Flaten downgraded DermTech to Hold from Buy with a price target of 63c, down from $3.50, after the company announced its intention to explore strategic alternatives and implement a restructuring plan, cutting 56% of employees in an effort to preserve cash. With access to additional capital clearly limited, the company has “opted for the dreaded strategic alternatives process,” says the analyst, who assumes the process will take 6-12 months to complete and expects the company will have minimal cash reserves.