Jefferies maintains Buy on WAVE Life Sciences stock, $26 target

Published 26/03/2025, 15:36
Jefferies maintains Buy on WAVE Life Sciences stock, $26 target

On Wednesday, WAVE Life Sciences (NASDAQ:WVE) received a reaffirmation of confidence from Jefferies, as analyst Roger Song reiterated a Buy rating and maintained the $26.00 price target for the company’s shares. According to InvestingPro data, the stock has delivered an impressive 67% return over the past year, with analyst targets ranging from $14 to $36, reflecting strong institutional confidence in the company’s potential. Song’s endorsement follows WAVE Life Sciences’ recent announcement of positive 48-week phase 2 trial data for its Duchenne muscular dystrophy (DMD) treatment, WVE-N531, which is designed to skip exon 53.

The treatment demonstrated a 7.8% dystrophin expression between weeks 24-48, with a level of 6.4% observed at week 48. Dystrophin is a key protein, and its increase is a significant indicator of the drug’s potential efficacy. Additionally, the trial results showed encouraging preliminary functional benefits in the Time to Run/Walk (TTR) test and the North Star Ambulatory Assessment (NSAA). Improvements in muscle health were also noted.

The safety profile of WVE-N531 was another highlight, as no serious adverse events (SAEs) or discontinuations were reported, indicating the treatment’s tolerability. These findings contribute to the growing body of evidence supporting the drug’s therapeutic potential for patients with DMD.

Looking ahead, WAVE Life Sciences is planning to file a New Drug Application (NDA) for Accelerated Approval (AA) in 2026. This submission is part of the company’s strategy to support monthly dosing upon the launch of WVE-N531. The maintained price target and rating by Jefferies underscore the firm’s optimism about the drug’s market prospects and WAVE Life Sciences’ future performance.

In other recent news, Wave Life Sciences has reported positive results from its Phase 2 FORWARD-53 trial for the investigational drug WVE-N531, aimed at treating Duchenne muscular dystrophy (DMD). The trial demonstrated significant improvements in muscle health and function, including a 3.8-second improvement in Time-to-Rise (TTR) and a 50% decline in creatine kinase levels, indicating muscle damage reduction. Following these results, the company plans to file a New Drug Application for accelerated approval in 2026. Analysts have responded positively, with Jones Trading reiterating a Buy rating and a $20 price target, while H.C. Wainwright maintains a Buy rating with a $22 target, highlighting confidence in the company’s scientific approach and pipeline potential.

Truist Securities also reaffirmed a Buy rating, setting a price target of $36, following Wave Life Sciences’ recent fourth-quarter update. The update included anticipation for further data on WVE-N531, suggesting potential improvements in dystrophin expression levels. Additionally, the company is advancing other projects, including treatments for Huntington’s disease and Alpha-1 antitrypsin deficiency. These developments reflect a robust pipeline and strategic partnerships, notably with GlaxoSmithKline (NYSE:GSK), which will share clinical development costs for certain programs. Wave Life Sciences’ ongoing research and development efforts continue to garner attention and support from the investment community.

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