In a report released yesterday, Yigal Nochomovitz from Citi maintained a Buy rating on Zai Lab, with a price target of $47.00.
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Yigal Nochomovitz has given his Buy rating due to a combination of factors related to Zai Lab’s pipeline and growth potential. He views the positive Phase 3 interim results for povetacicept in IgAN, generated by partner Vertex, as validating the drug’s efficacy and safety profile and as a key near‑term catalyst for Zai Lab’s shares. He notes that, although China‑specific data are still pending, there is no clear scientific rationale to suggest Chinese patients would respond differently, supporting the possibility of accelerated approval in China.
Nochomovitz also emphasizes the substantial IgAN patient population in China and the large diagnosed segment in higher‑tier hospitals, which together represent a meaningful commercial opportunity for povetacicept. Since this asset is not yet reflected in his financial model, he sees room for upside to his valuation and price target if the China opportunity materializes as expected. Taken together with Zai Lab’s ongoing business transformation and strategic focus, these elements underpin his Buy rating and the implied high expected return on the stock.
In another report released on February 26, Cantor Fitzgerald also maintained a Buy rating on the stock with a $37.00 price target.