UPDATE: Credit Suisse Starts Zymeworks (ZYME) at Outperform
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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."
Shares of Zymeworks closed at $29.83 yesterday.
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