Wave Life share raise not understood by market, says Mizuho

Mizuho says the market doesn’t understand Wave Life Sciences’ (WVE) share raise yesterday. “There are a couple of new details out this morning that strongly suggest this downward move can reverse this morning and continue over the course of today,” the analyst tells investors in a research note. The firm points out the SEC filing today said there was broad participation from existing investors, including GSK (GSK), and new investors in the financing. The Wave, GSK collaboration was formed in December 2022, well before Wave even announced that it had an INHBE program, Mizuho notes. This implies that if GSK wants the potential upside from Wave’s INHBE program, the only way to participate now is to buy the equity, says the firm. It keeps a Buy rating on Wave Life Sciences with a $10 price target.