Wave Life Sciences (WVE) Received its Third Buy in a Row

After Stifel Nicolaus and Mizuho Securities gave Wave Life Sciences (NASDAQ: WVE) a Buy rating last month, the company received another Buy, this time from H.C. Wainwright. Analyst Debjit Chattopadhyay maintained a Buy rating on Wave Life Sciences today and set a price target of $49. The company’s shares closed yesterday at $39.

Chattopadhyay observed:

“We value $49/share based on a risk-adjusted, sum-of-parts DCF analysis: beta of 0.76, terminal growth rate of 0.5%, risk premium of 4.93%, calculated WACC of 6.7%, and tax rate of 15% beginning in FY 2027. We value $3/share, respectively (Exhibit 16), which together account for roughly 90% of our target with the remainder derived from FTD and ALS expected to enter the clinic during 2H18. Risks to our target include: commercial, reimbursement, regulatory, along with clinical and manufacturing.”

According to TipRanks.com, Chattopadhyay is a 2-star analyst with an average return of 0.6% and a 43.2% success rate. Chattopadhyay covers the Healthcare sector, focusing on stocks such as Global Blood Therapeutics, Mersana Therapeutics Inc, and Voyager Therapeutics Inc.

Wave Life Sciences has an analyst consensus of Strong Buy, with a price target consensus of $56.25, which is a 44.2% upside from current levels. In a report issued on August 7, Stifel Nicolaus also initiated coverage with a Buy rating on the stock with a $56 price target.

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Based on Wave Life Sciences’ latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $35.24 million. In comparison, last year the company had a GAAP net loss of $24.69 million.

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Wave Life Sciences Ltd. is a biotechnology company, which engages in the development of proprietary synthetic chemistry drug. It focuses on the design, development, and commercialization of nucleic acid-based therapeutics. The company was founded by Gregory L. Verdine and Takeshi Wada on July 23, 2012 and is headquartered in Singapore.

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