Zai Lab’s Stable Growth and Competitive Challenges Justify Hold Rating

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 $36.10.

David Li has given his Hold rating due to a combination of factors including the current sales performance and competitive landscape. Zai Lab’s recent drug sales, such as niraparib and ripretinib, have shown modest year-over-year growth, which suggests stability but not significant acceleration in revenue.
Additionally, while the company is on the verge of commercializing multiple new products, the anticipated benefits are likely to be counterbalanced by increasing competition in the market, particularly for its core products like PARP inhibitors. This competitive pressure, coupled with the stock’s current valuation close to its price objective, supports the Hold rating.