J.P. Morgan analyst Anupam Rama has maintained their bullish stance on ZLAB stock, giving a Buy rating today.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter
Anupam Rama has given his Buy rating due to a combination of factors that highlight Zai Lab’s potential for growth and profitability. The company’s recent earnings call and investor meeting underscored strong top-line growth, particularly driven by the performance of Vyvgart, which showed a significant rebound in patient additions and revenue in March and April. This momentum is expected to continue, with projections indicating a substantial revenue increase by 2026.
Furthermore, Zai Lab’s strategic pricing negotiations for Vyvgart suggest a manageable impact on prices, which should support sustained revenue growth. The company’s revenue guidance for the year positions Zejula as the largest contributor, with Vyvgart expected to surpass it by 2026. Additionally, the anticipated GAAP profitability by the fourth quarter of 2024, driven by revenue growth and expense management, further supports the positive outlook. These factors, combined with promising developments in their pipeline, contribute to the optimistic view on Zai Lab’s stock.
In another report released today, Scotiabank also maintained a Buy rating on the stock with a $55.00 price target.