Yigal Nochomovitz, an analyst from Citi, maintained the Buy rating on Zai Lab. The associated price target remains the same with $69.00.
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Yigal Nochomovitz has given his Buy rating due to a combination of factors that highlight the potential of Zai Lab’s stock. The company has reported promising results from its Phase 1 trial of zoci, a DLL3-targeted antibody-drug conjugate (ADC), particularly in small cell lung cancer (SCLC) patients with untreated brain metastases. This strong efficacy signal, with an 80% objective response rate in this specific patient group, sets zoci apart from competitors, who have not included such patients in their trials.
Furthermore, the initiation of a global registrational study for second-line and beyond extensive-stage SCLC, with primary endpoints focusing on overall response rate and overall survival, suggests a strategic path towards accelerated approval by 2027. Despite concerns about competitive benchmarks and extended timelines due to increased sample sizes, the potential for significant upside in share price, estimated at a 162.2% return, underpins the Buy rating. The combination of zoci’s promising clinical profile and the strategic developments in its clinical program contribute to the positive outlook for Zai Lab.
Nochomovitz covers the Healthcare sector, focusing on stocks such as Sarepta Therapeutics, Summit Therapeutics, and Arcturus Therapeutics. According to TipRanks, Nochomovitz has an average return of 7.6% and a 42.74% success rate on recommended stocks.
In another report released on October 21, Leerink Partners also reiterated a Buy rating on the stock with a $74.00 price target.