William Blair Starts WAVE Life Sciences (WVE) at Outperform

William Blair analyst Alethia Young initiates coverage on WAVE Life Sciences (NASDAQ: WVE) with a Outperform rating.

The analyst comments: “We are initiating coverage of Wave Life Sciences with an Outperform rating, and our DCF-adjusted valuation is $8.37. Wave is a clinical-stage RNA medicines company advancing WVE-006 toward registrational development for AATD and WVE-007, an INHBE-targeting siRNA, through Phase IIa trials for obesity. Our call: We think 2027 Phase II data will better define WVE-007’s clinical profile following the Phase I dose-escalation study. We also believe WVE-006 deserves credit following FDA alignment on a pivotal study beginning in 2027. We model 2036 sales for WVE-006 of $606M and WVE-007 of $324M probability adjusted by 50% and 25%, respectively. Risks include clinical setbacks, delays, competition, and regulatory hurdles.

We think the preclinical and Phase I INLIGHT data were consistent with WVE-007’s INHBE mechanism. WVE-007 is a GalNAc-siRNA targeting INHBE, reducing the liver’s production of activin E, a protein involved in fat storage. In mice, a single dose produced 1) deep activin E knockdown; 2) weight loss similar to daily semaglutide at day 28, with visceral fat down 23%-40% with muscle preserved; and 3) double the weight loss with semaglutide. Body weight diverged from controls within 8-12 days, with effects lasting 12 weeks.”

For an analyst ratings summary and ratings history on WAVE Life Sciences click here. For more ratings news on WAVE Life Sciences click here.

Shares of WAVE Life Sciences closed at $3.19 yesterday.

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