Zealand Pharma (CPSE:ZEAL): Assessing Valuation After Dramatic 2025 Earnings Turnaround

Zealand Pharma (CPSE:ZEAL) just released its third quarter and nine-month results for 2025, showing a dramatic turnaround in both sales and profitability compared to the same periods last year. Investor attention is clearly focused on this shift.

See our latest analysis for Zealand Pharma.

After a tough start to the year, Zealand Pharma’s third quarter results have injected new optimism into the stock, with momentum clearly picking up as shown by the 24% share price return over the last 90 days. Still, the one-year total shareholder return remains down 28%, a reminder that, while fortunes may be turning, investors are weighing both renewed growth potential and the risks from recent volatility.

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With a stunning reversal in net income and share price momentum building, is Zealand Pharma genuinely undervalued today or are investors already factoring in all the future growth? Could this be a prime buying opportunity, or is everything priced in?

Most Popular Narrative: 37.6% Undervalued

The most closely followed narrative puts Zealand Pharma’s fair value at DKK 818.80, well above the last close of DKK 511.00. This gap reflects analyst optimism powered by clinical and strategic developments, urging investors to dig deeper into what underpins that bullish outlook.

The alliance with Roche for petrelintide significantly reduces commercialization risk and broadens access to manufacturing and distribution scale. This positions Zealand to capitalize on the global surge in obesity and metabolic disorder prevalence, a trend expected to support sustained long-term demand and topline expansion.

Read the complete narrative.

Want to know the secret ingredient driving analyst conviction? There is a bold set of financial expectations beneath this figure, built on the promise of blockbuster therapies and a margin trajectory that stands out within the sector. What supports the strong belief in future earnings? The full narrative reveals the numbers and the reasoning behind this forecast.

Result: Fair Value of DKK 818.80 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, setbacks in key clinical trials or growing competition from established obesity drugmakers could quickly undermine this bullish outlook for Zealand Pharma.

Find out about the key risks to this Zealand Pharma narrative.

Build Your Own Zealand Pharma Narrative

If you see the story differently or prefer to dig into the numbers on your own terms, you can craft a narrative in just minutes, your way. Do it your way

A great starting point for your Zealand Pharma research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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