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Wave Life Sciences (WVE) has drawn fresh attention after regaining full global rights to its investigational therapy WVE-006 from GSK, alongside new Buy rated analyst coverage and upcoming development plans.
See our latest analysis for Wave Life Sciences.
The recent attention on WVE-006 and fresh analyst coverage comes after a sharp 80.83% 90 day share price return and a 217.41% three year total shareholder return. However, the share price return year to date is a 15.42% decline, suggesting momentum has been strong over the medium term but choppy in the shorter term around news and expectations.
If RNA and obesity therapies are on your radar, it could be a moment to broaden your search with our screener of 27 healthcare AI stocks and see what else fits your watchlist.
With Wave Life Sciences now trading at $13.49 against an average analyst price target of $33.38, the key question is whether the market is overlooking its RNA pipeline or already factoring in much of the future growth potential.
At a last close of $13.49 versus a widely followed fair value estimate of $33.38, the prevailing narrative sees a wide gap between price and potential, anchored in upcoming clinical readouts and RNA platform progress.
The upcoming clinical data readouts for key programs (AATD with WVE-006 and obesity with WVE-007) in late 2025 and early 2026 represent potential inflection points, supported by strong early efficacy and favorable safety, and, if positive, could significantly expand revenue opportunities in large, underserved markets driven by an aging population and rising chronic disease prevalence.
Curious what kind of revenue ramp, margin shift, and future P/E multiple are being used to reach that higher fair value? The narrative leans on ambitious growth, a sizeable move in profitability, and a premium earnings multiple. If you want to see how those pieces fit together, the full story lays out every assumption driving that $33.38 number.
Result: Fair Value of $33.38 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, you still need to weigh risks such as reliance on a few lead programs with binary trial outcomes and rising R&D spending alongside ongoing net losses.
Find out about the key risks to this Wave Life Sciences narrative.
Those fair value models point to upside, but the simple P/S check tells a tougher story. Wave Life Sciences trades on a P/S of 22.6x, compared with 4.4x for the US Pharmaceuticals industry, 13.5x for peers, and a fair ratio of 3.2x that the market could move toward over time. That kind of gap can mean higher valuation risk if expectations reset. The key question is whether you think the story justifies staying that far above the pack.
