Analyst Derek Archila from Wells Fargo maintained a Hold rating on Zentalis Pharmaceuticals and decreased the price target to $5.00 from $6.00.
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Derek Archila has given his Hold rating due to a combination of factors impacting Zentalis Pharmaceuticals. The primary reason is the absence of immediate catalysts, as the top-line data from the DENALI Part 2a/b study for azeno in CCNE1+ PROC is not expected until the end of 2026. This delay in significant data release means that any potential positive developments are still far off, which contributes to the Hold rating.
Additionally, while the company’s recent restructuring has extended its cash runway into late 2027, providing some financial stability, the market’s confidence in azeno’s safety and efficacy remains low. This lack of confidence, coupled with a significant decline in stock value compared to industry benchmarks, suggests that the stock is unlikely to recover in the short term. Despite a reasonable clinical strategy, the timeline for potential success is extended, justifying the Hold recommendation.