Rodman & Renshaw Initiates Biomea Fusion (BMEA) at Buy with $8 Price Target

Biomea Fusion Inc. (NASDAQ:BMEA) is one of the overlooked growth stocks to buy. On January 14, Rodman & Renshaw initiated coverage of Biomea Fusion with a Buy rating and $8 price target.

In Q3 2025, Biomea announced that the company was shifting its strategy to focus on its two primary assets: icovamenib, a menin inhibitor for type 2 diabetes/T2D, and BMF-650, an oral GLP-1 receptor agonist for obesity. Icovamenib is an oral small molecule designed to partially inhibit menin, a protein that acts as a brake on pancreatic beta-cell growth. By inhibiting menin, the therapy aims to regenerate and reactivate healthy, insulin-producing beta cells, potentially offering a disease-modifying treatment for diabetes rather than just managing symptoms.

During the quarter, Biomea Fusion Inc. (NASDAQ:BMEA) reported durable 52-week data from its Phase II COVALENT-111 study. In patients with severe insulin-deficient T2D, a short 12-week course of icovamenib resulted in a sustained 1.5% mean reduction in HbA1c nine months after dosing ended. Additionally, patients who had failed to reach glycemic targets on GLP-1 therapies saw a 1.3% reduction in HbA1c. These results are particularly notable because they suggest a legacy effect where benefits continue long after the medication is stopped.

Biomea Fusion Inc. (NASDAQ:BMEA) is a clinical-stage diabetes and obesity medicines company that discovers and develops oral covalent small molecule drugs to treat patients with metabolic diseases in the US.

While we acknowledge the potential of BMEA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.