Wave Life Sciences (WVE) shares crashed more than 50% on Mardh 26 after the company’s interim Phase 1 data for its obesity candidate WVE-007 disappointed investors.
This immense pressure on Thursday saw WVE’s relative strength index (14-day) slip below 20, indicating extremely oversold conditions that often trigger a relief rally.
WVE stock is now down over 60% versus the start of 2026, a price point at which Oppenheimer recommends loading up on it for outsized gains.
Why Did WVE Stock Sink on Thursday?
According to Wave Life Sciences Ltd, a 200 mg dose of its WVE-007 showed a respectable 14.3% decline in visceral fat at six months.
However, a higher 400 mg dose achieved placebo-adjusted total body weight loss of just 0.9% in three months, far below the 5% threshold typically expected to compete with GLP-1 heavyweights.
Due to this lack of “more is better” efficacy, investors now fear that WVE-007 might struggle as a standalone therapy.
Note that WVE shares slipped below their 200-day moving average (MA) on Thursday, indicating the long-term uptrend has been compromised.
Is It Worth Buying WVE Shares?
Despite the carnage, Oppenheimer’s senior analyst Cheng Li maintained an “Outperform” rating on Wave Life Sciences shares on Thursday, with a $32 price target indicating they could 5x from here
According to him, the 400 mg data was likely skewed by a healthier baseline population with lower BMIs, which naturally limited the drug’s measurable impact.
Li expects the biotech firm to resolve this in its upcoming Phase 2a study and, therefore, sees the core thesis, fat loss while preserving muscle mass, as intact.
In short, with a cash runway extending into 2028, the Oppenheimer analyst views Thursday’s crash as an attractive entry point for long-term investors.
How Wall Street Recommends Playing WVE
Other Wall Street analysts also seem to agree with Li’s positive view on Wave Life Sciences stock.
According to Barchart, the consensus rating on WVE remains at “Strong Buy” with the mean price target of an even higher $35 indicating potential for a more than 400% upside from current levels.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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