H.C. Wainwright analyst Robert Burns upgraded the rating on Zymeworks to a Buy today, setting a price target of $26.00.
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Robert Burns has given his Buy rating due to a combination of factors related to Zymeworks’ recent pipeline developments and financial projections. The discontinuation of ZW171 led to adjustments in revenue forecasts, while the inclusion of pasritamig, a promising bispecific antibody targeting prostate cancer, has improved the outlook. The advancement of pasritamig into Phase 3 trials and potential milestone payments from Johnson & Johnson further bolster confidence in Zymeworks’ future revenue streams.
Additionally, the addition of risk-adjusted revenue forecasts for ZW191 and zanidatamab in various cancer treatments has strengthened the company’s valuation. Upcoming catalysts, such as Phase 1 results for ZW191 and Phase 3 trial data for zanidatamab, are expected to drive value. The DCF-based valuation approach, considering probabilities of approval and other financial metrics, supports a firm value of approximately $1.98 billion, leading to an upgraded price target of $26. However, risks such as clinical trial failures and manufacturing challenges remain considerations.
In another report released on October 11, LifeSci Capital also maintained a Buy rating on the stock with a $32.00 price target.