Canaccord Genuity Reiterates Buy Rating on Fractyl Health (GUTS)

Fractyl Health, Inc. (NASDAQ:GUTS) is one of the 11 Best New Penny Stocks to Buy Right Now. On July 18, Canaccord Genuity reiterated its “Buy” rating on Fractyl Health, Inc. (NASDAQ:GUTS) with a price target of $12.

This decision came after the company had shared new data from its Phase 3 trial of its lead product candidate, Revita.

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.

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Disclosure: None. This article is originally published at Insider Monkey.