Citi analyst Yigal Nochomovitz maintained a Buy rating on Zymeworks yesterday and set a price target of $22.00.
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Yigal Nochomovitz has given his Buy rating due to a combination of factors related to Zymeworks’ promising early-stage data for their ZW191 program. The Phase 1 data presented by Zymeworks showed a competitive overall response rate (ORR) of approximately 64%, which is favorable when compared to both existing and developing folate receptor-alpha targeting antibody-drug conjugates (ADCs). This promising efficacy, coupled with a relatively low incidence of severe treatment-related adverse events, suggests a potential for broader therapeutic applications, although further data is needed to confirm these findings.
Additionally, Zymeworks’ management highlighted the advantages of their moderate-potency payload and high internalization rate, which contribute to a wider therapeutic window and reduced toxicity. These factors not only support the clinical proof of concept for ZW191 but also partially mitigate risks associated with their other ADC programs in development. The company’s strategic plans to optimize dosing and explore combination therapies further enhance the potential for positive outcomes, contributing to the optimistic outlook reflected in the Buy rating.
In another report released yesterday, LifeSci Capital also maintained a Buy rating on the stock with a $32.00 price target.