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Citi bank urged investors Friday to “buy the big dip” in Biomea Fusion (NASDAQ:BMEA) shares, arguing that the market was “completely missing the point” of the company’s recently released data for its diabetes drug BMF-219.
Citi added that it believes short sellers were “attacking the stock again” following the company’s disclosure of 26-week data at the 100 mg QD cohort for the drug.
Shares of Biomea tumbled following the news and were down around 15% midday Friday.
In a note released Friday, Citi argued that the sell-off presented a buying opportunity for investors. It noted that the company was expected to present more data from the study at a medical conference on Saturday.
“The point which everyone is missing is that any residual HbA1c benefit 22 weeks after cessation of dosing is a win,” wrote Citi analysts, adding that they saw the results as an indication that the drug’s dosing schedule should be adjusted.
“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 price target of $90.