Jason Gerberry, an analyst from Bank of America Securities, has initiated a new Buy rating on Fractyl Health, Inc. (GUTS).
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Jason Gerberry has given his Buy rating due to a combination of factors including the positive interim results from Fractyl Health’s pivotal Remain-1 study. The study, which evaluates the Revita procedure for weight maintenance after discontinuation of GLP1 therapy, showed promising outcomes with Revita-treated patients losing additional weight compared to those in the sham group. This data exceeded expectations, suggesting Revita’s potential as a therapy-free option for maintaining weight loss.
Furthermore, the absence of significant safety concerns and the potential for upcoming catalysts, such as the 6-month midpoint update and pivotal topline results in the second half of 2026, contribute to the positive outlook. The increase in the program’s probability of success from 20% to 55% also supports the raised price objective of $5 per share, reflecting confidence in Revita’s market potential.
In another report released today, Canaccord Genuity also maintained a Buy rating on the stock with a $6.00 price target.