Zymeworks price target raised to $40 from $37 at Leerink

Leerink raised the firm’s price target on Zymeworks (ZYME) to $40 from $37 and keeps an Outperform rating on the shares after the company announced a strategic transformation from a traditional biotech into a revenue-generating royalty aggregator. The firm reiterated its Outperform rating given current valuation and its belief that the full HERIZON GEA-01 presentation will be a favorable catalyst. Additionally, current zani royalties/milestones represents roughly $29 in the firm’s model, suggesting the stock is undervalued on zani fundamentals alone, the analyst tells investors in a research note.