Canaccord Genuity Reiterates Buy Rating on Fractyl Health (GUTS)
This decision came after the company had shared new data from its Phase 3 trial of its lead product candidate, Revita.
A medical laboratory surrounded by advanced equipment, symbolizing the company's cutting-edge innovation in healthcare.
Canaccord Genuity had follow-up discussions with several physicians following the data presented by Fractyl Health, Inc. (NASDAQ:GUTS) from the open-label group of its ongoing Phase 3 trial for Revita in weight maintenance at the American Diabetes Association meeting.
These physicians who were consulted by the investment firm were all from large academic hospitals in the US. The physicians had different opinions on the mechanism behind the Revita procedure and the potential market size. However, they all agreed that controlled data is needed to fully assess the clinical profile.
The physicians said the main concern is the durability of the effect. Canaccord pointed out that even conservative market share estimates from the physicians surpassed the firm's current modeling expectations.
Canaccord Genuity expects Revita to reach 1% peak penetration in the weight maintenance population with a 60% probability of success. The investment firm projects that peak sales could reach $400 million in 2031.
Fractyl Health, Inc. (NASDAQ:GUTS) is a metabolic therapeutics company focused on pursuing therapies that target root causes of obesity and type 2 diabetes.
While we acknowledge the potential of GUTS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 10 Best American Semiconductor Stocks to Buy Now and 11 Best Fintech Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
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