Wave Life Sciences: Validated INHBE Mechanism, Promising WVE-007 Clinical Path, and GLP-1 Combination Upside Support Buy Rating

In a report released today, Yun Zhong from Wedbush maintained a Buy rating on Wave Life Sciences, with a price target of $33.00.

Yun Zhong has given his Buy rating due to a combination of factors tied to the emerging clinical profile of WVE-007 and the broader INHBE drug class. He points to data from Arrowhead’s INHBE and ALK7 programs as validating Wave’s approach, showing that suppressing INHBE can meaningfully cut visceral fat while maintaining or even improving lean muscle mass. The observed magnitude of Activin E reduction and associated fat loss from Arrowhead’s program appears broadly in line with what Wave has reported at similar dose levels, reinforcing confidence that Wave’s higher-dose cohorts, with readouts expected in 1Q26–2Q26, could deliver even stronger efficacy. In addition, Wave has a clear clinical roadmap, including planned Phase 2 trials of WVE-007 both as a standalone therapy, in combination with a GLP-1, and as a maintenance option following GLP-1 treatment, all of which provide multiple potential value-creating catalysts in 2026.
Another key element in Zhong’s positive stance is the additive potential of combining INHBE-targeting agents with GLP-1 therapies, where Arrowhead’s data indicate materially greater weight and fat reduction than GLP-1 treatment alone, suggesting a promising future combination opportunity for WVE-007 given its similar mechanism of action. Expert commentary highlighted in the report underscores that visceral fat reduction, rather than weight loss alone, is increasingly viewed as critical for improving metabolic health, positioning WVE-007 well if it continues to show robust effects on visceral adiposity. Both Wave’s and Arrowhead’s agents have so far exhibited favorable safety and tolerability, including at higher doses, which supports ongoing dose escalation and larger, more advanced trials. Taken together, the validated mechanism, comparable early efficacy, strong safety profile, and a series of upcoming clinical milestones underpin Zhong’s conviction that Wave Life Sciences shares offer attractive upside potential, justifying his Buy rating.

In another report released today, Clear Street also maintained a Buy rating on the stock with a $47.00 price target.

Based on the recent corporate insider activity of 44 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of WVE in relation to earlier this year.