Update shared on08 Oct 2025
Fair value Increased 6.95%Analysts have increased their price target for Zymeworks from $20.06 to $21.45, citing improving revenue growth forecasts, stronger projected profit margins, and growing confidence in the momentum of Zanidatamab in biliary tract cancer.
Analyst Commentary
Recent commentary from street research reflects a mix of optimism and caution surrounding Zymeworks, particularly as the company advances its lead asset, Zanidatamab, in the biliary tract cancer market.
Bullish Takeaways
- Bullish analysts cite progress with Zanidatamab as a key factor in raising price targets and note the treatment's growing clinical momentum.
- Expectations are high for upcoming data readouts. There is confidence that late Q4 HERIZON data could act as a significant catalyst for valuations.
- Improved revenue forecasts and strengthening profit margins are underpinning upward revisions in price targets.
- The consistent Buy rating signals confidence in the company's execution and ability to capture market share in biliary tract cancer.
Bearish Takeaways
- Bearish analysts point to the need for continued clinical validation and caution that upcoming trial results carry inherent execution risks.
- Uncertainty remains regarding the pace and breadth of Zanidatamab adoption, which could impact near-term revenue momentum.
- Some analysts maintain reservations about potential competition in the biliary tract cancer landscape, creating pressure to deliver differentiated outcomes.
What's in the News
- Zymeworks has voluntarily discontinued clinical development of ZW171, a T cell engager targeting mesothelin in multiple cancer types. The company cited an unfavorable benefit-risk profile based on Phase 1 trial results (Key Developments).
- The company entered a stock purchase agreement to issue 415,000 shares at $12.02 per share, raising approximately $5 million in a private placement scheduled to close in August 2025 (Key Developments).
- Zymeworks completed the repurchase of 2,545,402 shares, representing 3.6% of shares outstanding, for a total of $30 million under a previously announced buyback program (Key Developments).
- The U.S. FDA cleared the investigational new drug application for ZW251, an antibody-drug conjugate for HCC. Clinical trials are expected to begin in 2025 (Key Developments).
- Zanidatamab, Zymeworks' lead asset, received accelerated approval from the U.S. FDA, conditional approval in China, and conditional marketing authorization in Europe for previously treated, unresectable or metastatic HER2-positive biliary tract cancer (Key Developments).
Valuation Changes
- Consensus Analyst Price Target increased from $20.06 to $21.45, reflecting heightened expectations for the stock.
- Discount Rate edged up marginally from 6.78% to 6.79%, which indicates a slightly higher cost of capital being applied.
- Revenue Growth projections improved from 7.09% to 7.46%, signaling stronger anticipated top-line expansion.
- Net Profit Margin rose from 14.17% to 16.11%, pointing to expectations of improved operational efficiency and profitability.
- Future P/E ratio decreased from 105.1x to 97.9x, which suggests a more attractive forward valuation based on earnings forecasts.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.