Analyst Michael Yee of Jefferies maintained a Buy rating on Zai Lab (ZLAB – Research Report), with a price target of $50.00.
Michael Yee has given his Buy rating due to a combination of factors that highlight Zai Lab’s strong position despite geopolitical challenges. The company has shown resilience in the face of rising US-China tensions, with most of its manufacturing based in China, thus minimizing the impact of US tariffs. This strategic positioning allows Zai Lab to maintain its operations without significant disruption from the ongoing trade disputes.
Furthermore, Zai Lab’s diversified portfolio and promising pipeline, particularly the DLL3 asset, contribute to its positive outlook. The DLL3 asset is expected to generate substantial sales, with projections of $2 billion in peak sales in the US alone. This potential, combined with strong efficacy and safety data, supports the company’s growth prospects. Michael Yee acknowledges these fundamentals while remaining cautious about short-term geopolitical risks, yet he believes the company’s long-term potential justifies a Buy rating.
In another report released on April 7, Scotiabank also maintained a Buy rating on the stock with a $55.00 price target.
ZLAB’s price has also changed slightly for the past six months – from $24.640 to $27.060, which is a 9.82% increase.