BofA Lifts PepGen (PEPG) PT to $3 on Positive DM1 Data Despite Underperform Rating

Core Insights - PepGen Inc. (NASDAQ:PEPG) is identified as a stock with significant upside potential, with Bank of America raising its price target from $1 to $3 while maintaining an Underperform rating [1][3] - The positive early Phase 1 data for the DM1 program, which involves splicing correction, has prompted the update in financial modeling [1][2] Company Overview - PepGen is a clinical-stage biotechnology company focused on developing oligonucleotide therapeutics for severe neuromuscular and neurologic diseases in the US [3] - The DM1 program, PGN-EDODM1, aims to treat Myotonic Dystrophy Type 1 using proprietary Enhanced Delivery Oligonucleotide technology [2][3] Development Challenges - Despite the positive data, PepGen is noted to be behind its competitors in the development timeline, raising concerns about its ability to pursue an accelerated approval pathway [3] - The company requires further information on the functional benefits of splicing correction and the effects of repeat dosing [2]