10 Best Small-Cap Biotech Stocks to Buy According to Analysts

2. Wave Life Sciences Ltd. (NASDAQ:WVE

Number of Hedge Fund Holders: 36

Upside Potential: 185.55%

With significant upside potential, Wave Life Sciences Ltd. (NASDAQ:WVE) secures a spot on our list of the best small-cap biotech stocks to buy according to analysts.

On November 13, 2025, Jefferies analyst Roger Song noted that Wave Life Sciences Ltd. (NASDAQ:WVE)’s competitive positioning is improving, with Korro Bio’s KRRO-110 reporting failure to produce protective levels of corrected protein in a Phase 1/2 AATD trial. This led to the discontinuation of Korro Bio’s lead asset. The analyst keeps a “Buy” rating with a $26 price target on Wave Life Sciences.

Meanwhile, Wave Life Sciences Ltd. (NASDAQ:WVE) reported its Q3 results on November 10, 2025, where its $7.6 million revenue missed analyst forecasts of $12.89 million. At the same time, the company reduced its net loss from $61.8 million in Q3 2024 to $53.9 million, despite R&D and G&A expenses increasing to $45.9 million and $18.1 million. Increased costs were related to the company’s ongoing investment in clinical programs, particularly the WVE-007 trial.

Furthermore, the quarter saw Wave Life Sciences Ltd. (NASDAQ:WVE) reporting a cash runway extended through Q2 2027. This will help ensure operational continuity and funding for ongoing clinical and development initiatives. Looking ahead, the company seems well-positioned to advance its clinical-stage pipeline, as it remains focused on RNA-based therapies and strategic expansion of its product development programs.

Wave Life Sciences Ltd. (NASDAQ:WVE), a clinical-stage biotech company, develops and commercializes ribonucleic acid (RNA) medicines with the help of its proprietary PRISM discovery and drug development platform.