We came across a bullish thesis on BioAge Labs, Inc. (BIOA) on Substack by Ragnarok Research. In this article, we will summarize the bulls’ thesis on BIOA. BioAge Labs, Inc. (BIOA)'s share was trading at $3.87 as of April 17^th.

A biopharmaceutical laboratory with researchers at work analyzing complex molecules.

BioAge Labs (BIOA) represents a classic "cigarette butt" investment—an overlooked and beaten-down company that still has a few valuable puffs left. Following the abrupt halt of its STRIDES Phase 2 clinical trial for the obesity drug Azelaprag in December 2024, due to elevated liver enzymes in several patients, shares collapsed by over 76%. This sharp decline led investors to assume the company had no remaining value. However, BioAge retains meaningful worth both in its balance sheet and in the long-term potential of its income statement. The market’s overreaction has created a significant mispricing. With limited downside and credible hidden value, it fits the mold of a cigar butt stock—one discarded by the market but still capable of delivering strong returns. The investment case is based on the belief that BioAge’s current valuation ignores both its asset base and future income potential, with a price target of $7 per share reflecting its true worth.

BioAge Labs, Inc. (BIOA) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held BIOA at the end of the fourth quarter which was 17 in the previous quarter. While we acknowledge the risk and potential of BIOA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BIOA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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