Analyst Yigal Nochomovitz from Citi maintained a Buy rating on Zymeworks and increased the price target to $35.00 from $22.00.
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Yigal Nochomovitz has given his Buy rating due to a combination of factors related to Zymeworks’ recent clinical trial results and potential market performance. The positive data from the HERIZON-GEA-01 trial, which demonstrated a statistically significant progression-free survival (PFS) benefit for the combination of zani+chemo compared to trastuzumab+chemo in first-line HER2-positive gastric cancer, played a crucial role in this assessment. The decision by JAZZ to include all 920 patients in the analysis likely improved the chances of achieving statistical significance, which was anticipated based on previous phase 2 comparisons.
Additionally, the strong trend observed in overall survival (OS) for zani+chemo at the first interim analysis, along with the triplet therapy (zani+chemo+tisle) exceeding expectations by hitting OS statistical significance, further supports the Buy rating. The expectation that zani+chemo will achieve OS statistical significance at the next interim analysis in mid-2026 adds to the positive outlook. The increase in the probability of success for zani and the adjustment of the target price to $35 reflect the promising potential of Zymeworks’ therapeutic offerings, leading to an expected share price return of 89%.
Nochomovitz covers the Healthcare sector, focusing on stocks such as Neurocrine, Summit Therapeutics, and Zymeworks. According to TipRanks, Nochomovitz has an average return of 3.8% and a 39.71% success rate on recommended stocks.
In another report released on November 7, Stifel Nicolaus also maintained a Buy rating on the stock with a $30.00 price target.