J.P. Morgan analyst Brian Cheng maintained a Buy rating on Zymeworks today and set a price target of $23.00.
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Brian Cheng has given his Buy rating due to a combination of factors, primarily focusing on the potential upside from Zymeworks’ internal pipeline, which is not fully appreciated by the market. The upcoming presentation of the initial data from the ZW191 Phase 1 trial at the AACR-NCI-EORTC International Conference is a significant catalyst that could reveal promising early efficacy and safety data, providing a clearer picture of the drug’s potential.
Additionally, Cheng highlights the strategic value of Zymeworks’ licensing partnerships, particularly for its HER2 bispecific, zanidatamab, which mitigates risk and allows the company to concentrate on developing other promising pipeline candidates like ZW191. The valuation model used by Cheng incorporates a DCF-based SOTP approach, assigning substantial value to ZW191 and other pipeline assets, leading to an increased price target of $23 by December 2026. This comprehensive analysis underscores the potential for significant growth and justifies the Buy rating.
In another report released on October 14, H.C. Wainwright also upgraded the stock to a Buy with a $26.00 price target.