ReShape Lifesciences price target lowered to $1 from $4 at Maxim

Maxim lowered the firm’s price target on ReShape Lifesciences to $1 from $4 but keeps a Buy rating on the shares. The analyst cites the company’s lower than expected Q3 revenue and earnings, along with its announcement that it is reorganizing the company and implementing cost saving measures, including a roughly 25% reduction in workforce. The topline miss largely reflects the increasing popularity of GLP-1 prescription drugs for weight loss treatment as an alternative to bariatric surgery, but while these headwinds may continue in the near term, there is a growing body of evidence that points to the limitations of these drugs, the firm added.