Rapt outlook ‘remains steady’ despite shift in timeline, says Capital One

Capital One analyst Zegbeh Jallah notes that Rapt Therapeutics’ shares pulled back by about 25% after the announced shift in the readout of its Phase 2b Atopic Dermatitis study from year-end 2023 to mid 2024. The study is evaluating the company’s lead drug RPT193, which the firm views as "the key to a possible acquisition" of the company, so "it is understandable that investors are sensitive to any timeline shifts," but the firm remains "bullish" as it said that while the shift is material, it was a function of the seasonality of enrollment and is not reflective of patients’ or physicians’ enthusiasm about the RPT193. Capital One keeps an Overweight rating and $48 price target on Rapt shares.