Q32 Bio downgraded to Market Perform from Outperform at BMO Capital

BMO Capital downgraded Q32 Bio (QTTB) to Market Perform from Outperform with a price target of $3, down from $22. The company announced an internal restructuring, discontinuing development of its main value driver, ADX-097, to focus on bempikibart development in patients with alopecia areata, the analyst tells investors in a research note. The firm says that while te decision seems to signal confidence in bempikibart, the drug’s early clinical profile is not compelling enough to merit meaningful value beyond what it already assumes. As such, it removed contributions from ADX-097 and downgraded the shares.