Within weeks of going public, Metsera is already starting to earn attention from Wall Street analysts due to its connection to the buzzing obesity market. Bank of America’s Tim Anderson initiated coverage of the clinical-stage biotech stock with a buy rating. Anderson’s $38 price target implies 27.5% upside from Monday’s closing level. The analyst pointed out that Metsera has both oral and injectable offerings, with three assets in human studies and more in preclinical stages. Anderson also noted that the company’s management team has relevant experience. “This combination of offerings is unique among obesity SMID cap peers, in our view, and it could make MTSR attractive to large biopharmaceutical companies seeking a turn-key solution to enter the obesity category,” Anderson wrote to clients on Tuesday. Bank of America isn’t the only Wall Street firm seeing an opportunity with the stock, which went public earlier this year. Guggenheim analyst Seamus Fernandez opened coverage with a buy rating on Tuesday. Fernandez’s $56 price target implies shares can surge 87.9%. Fernandez described the stock as having several opportunities to see its valuation upgraded, while it has protection to downside risk from a lead asset that can help it secure a position in the obesity market. The analyst also highlighted the experience of the leadership team, adding that investors should build a position before certain catalysts come to fruition. Goldman Sachs analyst Chris Shibutani also initiated coverage, offering another sign of the stock’s rising profile on Wall Street. However, the bank did not assign a rating or price target given its policy that a biotech company must first have a product that has passed a Phase 2 clinical trial or a license to distribute after that stage. The New York-based company has surged 66% since its initial public offering in January. But shares have pulled back by around 7% over the last week.
