By Metsera Inc (NASDAQ: MTSR) has been pushing to the upside since its debut on Nasdaq on January 31st.
But analysts are convinced the recent price action is a drop in the bucket compared to where this stock is headed in the long run.
Wall Street expects the biotech firm’s focus on obesity treatments to help unlock significant further upside in its share price moving forward.
In fact, Seamus Fernandez – a Guggenheim analyst expects Metsera stock to hit $56 over the next 12 months, indicating potential upside of nearly 90% from current levels.
Why is Guggenheim bullish on Metsera stock?
Seamus Fernandez sees several catalysts that could drive Metsera shares up sharply in 2025.
The biotechnology company is working on injectable as well as oral treatments for obesity.
A bunch of its assets are in preclinical stages while three of them have entered human trials as well.
MTSR’s lead asset limits the downside risk as it could soon win it a place in the weight-loss drugs market, the Guggenheim analyst told clients in a research note on Tuesday.
Additionally, the company’s management comprises industry veterans that further makes owning its stock all an exciting proposition for this year, he added.
All in all, Fernandez favours owning Metsera stock before the catalysts start playing out.
What other analysts expect from MTSR in 2025
Investors should note that Guggenheim is not alone in keeping a bullish view on Metsera stock.
Others including the Bank of America expects it to be a lucrative investment in 2025 as well.
The firm’s analyst Tim Anderson even talked of the possibility of a biopharmaceutical behemoth to catch an interest in MTSR.
“This combination [injectable + oral] is unique among obesity SMID cap peers, and it could make Metsera attractive to large biopharma companies seeking a turn-key solution to enter obesity category,” he wrote in a recent report.
Metsera, however, is not a dividend stock and is, therefore, unattractive for income investors.
Should you buy Metsera shares today?
Analysts are bullish on the biotech stock as the weight-loss drugs market is broadly expected to hit $150 billion in valuation by the end of this decade.
Metsera raised $275 million last month as it priced its initial public offering (IPO) at $18 a share.
In comparison, MTSR is going for nearly $30 per share at the time of writing.
Metsera’s IPO was well received as investors hoped for a relatively easier path ahead under the Trump administration that’s revealed plans of lowering corporate taxes and announcing pro-business policies.
On the flip side, it’s worth mentioning that Metsera is currently a pre-revenue company.
So, at best, it’s a high-risk, speculative investment that could turn either ways for investors in 2025.
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