Design Therapeutics' (DSGN) Friedreich Ataxia program could deliver meaningful clinical benefits and bolster confidence in the company's platform, RBC Capital Markets said in a Thursday note.

The brokerage highlighted that the program's lead candidate, DT-216P2, is a fundamentally improved formulation with higher systemic exposure and a more durable pharmacokinetic profile compared with the prior DT-216P1.

Early ex-US dosing in the Restore-FA trial has shown favorable safety and pharmacokinetics, supporting expectations for positive upcoming clinical data, with readouts from the Phase I/II study expected in the second half of 2026.

Analysts said DT-216P2's improvements are expected to drive significant increases in frataxin mRNA and protein levels, which could translate into meaningful clinical benefits for patients. RBC also noted potential upside from Design Therapeutics' related programs, including DT-168 Fuchs and DM1.

The brokerage estimates Design Therapeutics could generate over $1.9 billion in revenues by 2034, though the firm's speculative risk qualifier remains unchanged.

RBC upgraded the stock to outperform from sector-perform and raised the price target to $13 from $6.

Shares of Design Therapeutics were up more than 16% in recent trading.

Price: 8.55, Change: +1.21, Percent Change: +16.42