Investing.com -- BioAge Labs, a clinical-stage biotech company developing therapies for metabolic diseases, has attracted attention from Wall Street investment banks, with three analysts initiating coverage of the stock on Monday.

Jefferies sees the potential for "better quality weight loss" when used in combination with incretin therapies like tirzepatide and semaglutide. Jefferies also modeled peak adjusted revenues of approximately $1.8 billion, supported by upcoming Phase 2 data expected in 3Q25 and 2H26.

Morgan Stanley launched coverage with an Overweight rating and a $40 price target, highlighting BioAge's collaboration with Eli Lilly (NYSE: LLY) as a significant endorsement of the company's approach.

"We think arguably the most compelling reason to be bullish on BioAge is its partnership with Eli Lilly, which not only validates the company's approach (Lilly is also involved in the study design and running the study) but provides potential optionality as Lilly has exclusive right of first negotiation with the Phase 2 results," Morgan Stanley wrote.

The bank also praised azelaprag's ability to double the weight loss of GLP-1 therapies while improving muscle function, based on preclinical studies.

Goldman Sachs took a more cautious approach, initiating coverage without a rating but remaining optimistic about BioAge's potential. They highlighted that azelaprag could yield a "significant dose-dependent benefit" in weight loss, with preclinical data suggesting it delivers 2.5 times more weight loss when added to GLP-1 monotherapies.

Goldman Sachs is also watching for potential partnerships to develop oral incretin combinations, viewing this as a major growth opportunity.

All three firms noted that Phase 2 data, in combination with GLP-1 therapies, will be key milestones. Results from the STRIDES study with tirzepatide are expected in 3Q25, with further data from a semaglutide combination anticipated in 2H26.