Robert Burns, an analyst from H.C. Wainwright, reiterated the Hold rating on Zymeworks. The associated price target remains the same with $13.00.
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Robert Burns has given his Hold rating due to a combination of factors surrounding Zymeworks’s current market position and future prospects. The recent approval of zanidatamab in the European Union for treating HER2-positive biliary tract cancer is a positive development, showcasing a notable objective response rate and median duration of response. However, despite these advancements, the overall market potential remains uncertain, with standard therapies exhibiting lower response rates and survival durations.
Additionally, Burns considers upcoming catalysts such as the investigational new drug submission for ZW251 and the anticipated data release for the Phase 3 HERIZON-GEA-01 trial as potential value drivers. The valuation approach, based on discounted cash flow, suggests a firm value of approximately $1.0 billion, but the probability of approval for various treatments remains variable. Risks such as clinical trial failures, manufacturing challenges, and potential commercial uptake issues further justify the Hold rating, as these factors could impact the company’s ability to achieve its projected growth and market penetration.
Based on the recent corporate insider activity of 17 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ZYME in relation to earlier this year.