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Citi bank on Friday urged investors to “buy the big dip” in Biomea Fusion (NASDAQ:BMEA) stock, arguing that the market was “completely missing the point” of the company's recently released data on its diabetes drug BMF-219.
Citi added that it believes Short sellers were “attacking the stock again” after the company disclosed 26-week data in the 100 mg once-daily cohort for the drug.
Biomea shares plummeted following the news and were down around 15% by midday on Friday.
In a note published Friday, Citi argued that the liquidation presented a buying opportunity for investors. He noted that the company was expected to present more data from the study at a medical conference on Saturday.
“What everyone misses is that any residual HbA1c benefit 22 weeks after stopping dosing is a win,” the Citi analysts wrote, adding that they saw the results as an indication that the dosing schedule should be adjusted. of the drug.
“We cannot emphasize enough the opportunity to buy shares at the current discount,” the analysts added.
Citi currently has a buy/high risk rating on the stock with a $90 price target.
