Fractyl Health downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded Fractyl Health (GUTS) to Equal Weight from Overweight with a price target of $2, down from $8. In the randomized REMAIN-1 midpoint cohort at six months, Revita patients experienced 4.5% weight regain, which fell short of expectations and raises questions, the analyst tells investors. While the firm continues to believe success in the pivotal study is possible, it is taking a more cautious view and moving to the sidelines.