Zymeworks upgraded to Buy at Jefferies with increased clarity

As previously reported, Jefferies analyst Akash Tewari upgraded Zymeworks (ZYME) to Buy from Hold with a price target of $11, up from $7.70. There’s been clarity around three key issues over the last few months – the capital structure, the viability of ZW25 in an increasingly competitive HER2 market, and details on its pipeline – but the stock is back near $6-$7 per share, which is similar to where it was after the capital raise at the start of 2022, noted Tewari. The analyst thinks Jazz Pharmaceuticals (JAZZ) will exercise its $325M option and believes updated data at ASCO GI in January on zani+chemo in first-line GEA may continue to show competitiveness versus other agents.