In a report released today, David Li from Bank of America Securities maintained a Hold rating on Zai Lab (ZLAB – Research Report), with a price target of $32.60.
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David Li has given his Hold rating due to a combination of factors influencing Zai Lab’s current market position. The company’s diverse portfolio, including drugs like niraparib, ripretinib, omadacycline, and efgartigimod alfa, has shown significant sales growth in March 2025, with month-over-month increases ranging from 23.9% to 53.7%. However, despite these promising sales figures, the competitive landscape is intensifying, particularly in the PARP inhibitor market in China, where Zai Lab’s niraparib faces strong competition from other products like olaparib, which holds a larger market share.
While Zai Lab is on the brink of commercializing multiple products, the influx of competitors in its core markets poses a challenge to its growth prospects. This competitive pressure, coupled with the company’s current stock price being close to the price objective of $32.60, supports the Hold rating. The valuation metrics, such as the enterprise value to EBITDA ratio, also suggest that the stock is fairly valued at its current price, leading to a cautious investment stance.
According to TipRanks, Li is an analyst with an average return of -4.3% and a 38.64% success rate.