BofA lowered the firm’s price target on Fractyl Health (GUTS) to $6 from $13 and keeps a Buy rating on the shares after the company announced a workforce restructuring and pipeline prioritization, which would pause Revita R&D in diabetes in favor of advancing the device for obesity. While noting that Fractyl may resume development in type two diabetes in the future, the firm remove its T2D forecast, which had accounted for $7 per share in its sum-of-the-parts valuation.
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