Metsera Inc. (NASDAQ: MTSR), has seen its stock rise since it debuted on Nasdaq January 31 st.
Analysts are confident that the stock’s recent price movement is just a small drop in the ocean compared with where it is heading in the future.
Wall Street believes that the focus of this biotech company on treating obesity will help to unlock further significant upsides in its stock price.
Seamus Fernandez, an analyst at Guggenheim, expects Metsera to reach $56 in the next year, which is a potential increase of almost 90% over current levels.
Why does Guggenheim have a bullish outlook on Metsera?
Seamus Fernandez believes that there are several factors which could lead to a sharp rise in Metsera’s shares by 2025.
Biotechnology companies are working to develop oral and injectable treatments for obesity.
Three of the assets have also entered clinical trials.
The Guggenheim Analyst told Guggenheim clients that MTSR’s leading asset could limit the downside risks as it may soon gain a position in the market for weight loss drugs.
He added that the management of the company is made up of industry veterans, which makes it even more exciting to own its shares this year.
Fernandez is a fan of Metsera before catalysts begin to play out.
What analysts are expecting from MTSR by 2025
Investors are advised to note that Guggenheim does not hold a bullish outlook on Metsera.
Other companies, such as Bank of America, expect it to continue being a profitable investment until 2025.
Tim Anderson, the firm’s senior analyst, even mentioned that a biopharmaceutical giant could be interested in MTSR.
This combination (injectable and oral) is unique among SMID caps for obesity, he said in a report. “It could make Metsera appealing to large biopharmaceutical companies looking for a solution that will allow them to easily enter the obesity market,” he added.
Metsera is not, however, a dividend-paying stock, and therefore is unattractive to income investors.
Do you think it’s time to buy Metsera stock?
The biotech market, which is expected to reach $150 billion by 2020, has analysts bullish.
Metsera has raised $275m last month, when it priced its Initial Public Offering (IPO) to $18 per share.
MTSR shares are currently selling for around $30 each.
Metsera’s IPO received a positive response from investors who hoped that the Trump Administration would ease up on corporate taxation and announce pro-business policies.
Metsera, on the other hand, is a company that has not yet generated any revenue.
At best, this is a high-risk speculative purchase that can go either way for investors by 2025.
The post This weight loss drug stock may deliver a 90 percent return by 2025 will be updated as new information becomes available.
