Analyst Charles Zhu from LifeSci Capital maintained a Buy rating on Zymeworks and keeping the price target at $30.00.
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Charles Zhu has given his Buy rating due to a combination of factors that reflect Zymeworks’ strategic focus and promising pipeline. Despite the discontinuation of ZW171, a T-cell engager targeting MSLN, Zhu’s thesis remains unaffected as this asset had minimal impact on the company’s valuation. The decision to halt ZW171’s development is seen as a prudent allocation of resources towards more promising candidates, aligning with management’s disciplined capital spending strategy.
Furthermore, Zymeworks’ other pipeline assets are progressing well, with ongoing and planned trials for ZW191, ZW251, and ZW209, which target different cancer antigens. The company’s commitment to advancing these assets, along with the anticipated Phase 3 HERIZON-GEA-01 trial results, supports Zhu’s optimistic outlook. These developments, combined with a manageable cash burn and strategic focus on high-impact projects, underpin the Buy rating.