Design Therapeutics cut to Neutral at Piper on limited near-term news flow

Piper Sandler analyst Yasmeen Rahimi downgraded Design Therapeutics to Neutral from Overweight with a price target of $6, down from $42, given that the company is going through a strategic process to prioritize long-term growth. The firm still believes in Design’s GeneTac platform and says DT-216 “looks promising,” but given that Design is working on a new formulation that allows for higher dosing and topline data is not expected until the second half of 2025, a lack of clinical data “will result in limited news flow, and thus limit the number of stock moving events,” the analyst tells investors.