UPDATE: Credit Suisse Starts Zymeworks (ZYME) at Outperform

March 30, 2021 4:08 PM EDT
Get Alerts ZYME Hot Sheet
Price: $27.49 -9.51%

Rating Summary:
    12 Buy, 3 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 20 | New: 68
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(Updated - March 30, 2021 4:30 PM EDT)

Credit Suisse analyst Brad Canino initiates coverage on Zymeworks (NYSE: ZYME) with a Outperform rating and a price target of $55.00.

The analyst comments "We believe ZYME shares are attractive ahead of multiple pipeline de-risking opportunities through 2022, which include zanidatamab phase 2 data in two HER2-positive (HER2+) cancers and the preliminary antitumor activity of ZW49. We believe, at a minimum, zanidatamab has a high probability of success in niche markets worth ~$300mm in risk-adjusted (~$500mm unadjusted) US sales, which supports up to 50% of the current valuation. However, we also see realistic upside potential to multi-billions in sales pending strategic decisions and supportive data, most notably the HER2 low opportunity. Our risk-adjusted peak revenue forecast of $1.3bn has six levers for de-risking, which limits the typical binary biotech valuation swings over a long-term period. We are comfortable with the competitive dynamics facing ZYME in these cancer markets, as we believe there is sufficient mechanistic and safety differentiation."

For an analyst ratings summary and ratings history on Zymeworks click here. For more ratings news on Zymeworks click here.

Shares of Zymeworks closed at $29.83 yesterday.


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