Zymeworks, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Charles Zhu from LifeSci Capital maintained a Buy rating on the stock and has a $32.00 price target.
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Charles Zhu has given his Buy rating due to a combination of factors including the promising outlook for Zymeworks’ zanidatamab in the HERIZON-GEA-01 trial. The updated analysis suggests that the combination of zanidatamab and chemotherapy is expected to achieve a median progression-free survival (mPFS) of 13.8 to 16.6 months, which exceeds the 12-month benchmark under various scenarios. This performance positions zanidatamab as a potential standard-of-care for HER2+ metastatic gastroesophageal adenocarcinoma (mGEA), particularly in the PD-L1+ segment, offering a competitive edge over existing treatments.
Furthermore, the analysis indicates that the trial could match or even surpass its Phase 2 results, which is a positive indicator as drugs transition to Phase 3. The improvements in trial design, such as addressing issues from Phase 2 like the lack of diarrhea prophylaxis and the need for HER2+ confirmation, enhance the confidence in these projections. Additionally, the financial analysis suggests a potential 30% stock upside for Zymeworks, reinforcing the buy recommendation given the company’s strategic positioning and the promising trial outcomes.
Zhu covers the Healthcare sector, focusing on stocks such as Zymeworks, IDEAYA Biosciences, and Nuvalent. According to TipRanks, Zhu has an average return of 10.3% and a 57.25% success rate on recommended stocks.
In another report released on October 1, J.P. Morgan also maintained a Buy rating on the stock with a $20.00 price target.