Zymeworks (NASDAQ:ZYME) Stock Price Up 11.4% After Analyst Upgrade

Key Points

• Zymeworks shares rose 11.4% after HC Wainwright raised its price target to $55 from $51 and maintained a “buy” rating. The stock has a consensus “Moderate Buy” rating and an average analyst target of $40.22.
• The FDA approved two Ziihera-based regimens for first-line HER2-positive gastroesophageal cancer, triggering a $250 million milestone payment from Jazz Pharmaceuticals and expanding Zymeworks’ commercial opportunity.
• Despite the positive developments, Zymeworks reported a quarterly revenue decline of 90.6% year over year and missed EPS estimates. Future upside remains dependent on successful confirmatory trials, Ziihera sales, and commercialization partners Jazz and BeOne.

Zymeworks Inc. (NASDAQ:ZYME - Get Free Report) shares were up 11.4% on Wednesday after HC Wainwright raised their price target on the stock from $51.00 to $55.00. HC Wainwright currently has a buy rating on the stock. Zymeworks traded as high as $29.00 and last traded at $30.6040. Approximately 192,270 shares changed hands during mid-day trading, a decline of 72% from the average daily volume of 675,212 shares. The stock had previously closed at $27.47.

Other equities analysts have also issued research reports about the stock. Stifel Nicolaus set a $46.00 price objective on shares of Zymeworks in a research note on Friday, August 7th. Deutsche Bank Aktiengesellschaft set a $32.00 target price on Zymeworks in a report on Wednesday. B. Riley Financial reaffirmed a "buy" rating and issued a $44.00 target price (up from $40.00) on shares of Zymeworks in a research report on Monday, August 10th. Wells Fargo & Company upped their price target on Zymeworks from $37.00 to $40.00 and gave the company an "overweight" rating in a research report on Friday, August 7th. Finally, Citigroup restated a "market outperform" rating on shares of Zymeworks in a report on Wednesday. Nine equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $40.22.

More Zymeworks News

Here are the key news stories impacting Zymeworks this week:

• Positive Sentiment: The FDA approved two Ziihera-containing regimens for first-line treatment of HER2-positive gastroesophageal adenocarcinoma, expanding the drug’s commercial opportunity and marking zanidatamab’s second FDA approval in less than two years. Zymeworks FDA approval and milestone announcement
• Positive Sentiment: The approval triggers a $250 million milestone payment from Jazz Pharmaceuticals, bringing Zymeworks’ total upfront and milestone payments from Jazz to $650 million. The company remains eligible for up to $1.3 billion in additional Jazz milestones and tiered royalties of 10% to 20% on net sales, plus potential payments and royalties under its BeOne Medicines collaboration. Zymeworks $250 million milestone
• Positive Sentiment: Citizens JMP reaffirmed a “market outperform” rating and set a $32 price target, while HC Wainwright raised its target to $55 from $51 and maintained a “buy” rating. These targets imply continued upside from the referenced $27.47 share price. Analyst price target updates
• Neutral Sentiment: The approval is supported by Phase 3 HERIZON-GEA-01 results, including median overall survival of more than two years; however, additional analyses and an ongoing confirmatory trial remain important for validating long-term clinical benefit.
• Negative Sentiment: Zymeworks remains dependent on Jazz and BeOne for commercialization and future milestone payments. Delays, disappointing confirmatory-trial results, safety concerns, or weaker-than-expected Ziihera sales could limit the stock’s upside.

Institutional Trading of Zymeworks

Large investors have recently added to or reduced their stakes in the business. Nykredit A S acquired a new stake in shares of Zymeworks in the 2nd quarter valued at $25,000. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Zymeworks in the fourth quarter worth about $37,000. Quarry LP acquired a new stake in shares of Zymeworks in the third quarter worth about $50,000. Tower Research Capital LLC TRC boosted its stake in shares of Zymeworks by 29.6% during the 2nd quarter. Tower Research Capital LLC TRC now owns 4,947 shares of the company's stock worth $62,000 after acquiring an additional 1,131 shares in the last quarter. Finally, State of Wyoming bought a new stake in Zymeworks during the second quarter worth approximately $73,000. 92.89% of the stock is owned by institutional investors.

Zymeworks Price Performance

The firm has a fifty day simple moving average of $24.60 and a 200 day simple moving average of $24.72. The company has a market cap of $2.14 billion, a price-to-earnings ratio of -14.95 and a beta of 1.15.

Zymeworks (NASDAQ:ZYME - Get Free Report) last posted its quarterly earnings data on Friday, August 7th. The company reported ($0.62) EPS for the quarter, missing analysts' consensus estimates of ($0.56) by ($0.06). Zymeworks had a negative return on equity of 72.30% and a negative net margin of 405.31%.The business had revenue of $3.23 million during the quarter, compared to the consensus estimate of $4.54 million. During the same quarter in the previous year, the firm posted $0.03 earnings per share. The company's revenue for the quarter was down 90.6% on a year-over-year basis. Analysts expect that Zymeworks Inc. will post 1.25 earnings per share for the current year.

Zymeworks declared that its Board of Directors has approved a share repurchase program on Thursday, May 14th that allows the company to buyback $125.00 million in shares. This buyback authorization allows the company to repurchase up to 7% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's leadership believes its shares are undervalued.

Zymeworks Company Profile

Zymeworks Inc is a clinical-stage biopharmaceutical company dedicated to the discovery, development and commercialization of next-generation multifunctional biotherapeutics. The company specializes in engineered antibody and protein therapeutics designed to address a range of unmet medical needs in oncology and other serious diseases. Through its proprietary platforms, Zymeworks aims to create novel bispecific and multispecific molecules that can simultaneously engage multiple targets and recruit immune effector functions to enhance potency and specificity.

At the core of Zymeworks' innovation is its Azymetric™ bispecific antibody platform, which enables the design of asymmetrical bispecific antibodies with controlled assembly and high stability.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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