Citi reiterates Buy rating on Zenas Biopharma stock with $27 price target

Published 10/07/2025, 11:38
Citi reiterates Buy rating on Zenas Biopharma stock with $27 price target

Investing.com - Citi has reiterated its Buy rating and $27.00 price target on Zenas Biopharma (NASDAQ:ZBIO) following a virtual fireside chat with the company’s Chairman and CEO, Lonnie Moulder. The target represents significant upside potential, with analyst targets ranging from $18 to $45, according to InvestingPro data.

The discussion centered on the company’s lead drug candidate obexelimab, highlighting its differentiated profile compared to competitive therapies for B cell-linked autoimmune diseases. Citi noted specific focus on the drug’s ongoing clinical trials for IgG4-RD, multiple sclerosis, and SLE.

Zenas BioPharma confirmed it has cash runway extending into the fourth quarter of 2026 and indicated potential for business development activities in the next 12-18 months, according to Citi’s research note.

The investment bank expects two pipeline readouts by year-end 2025, including Phase 2 multiple sclerosis data and Phase 3 IgG4-RD results, which could serve as significant catalysts for the stock. The company’s shares have already shown strong momentum, gaining over 29% in the past six months. Get access to more exclusive insights and 8 additional ProTips with InvestingPro.

Citi analyst Yigal Nochomovitz specifically highlighted the risk/reward profile for the multiple sclerosis program as "particularly favorable," noting obexelimab’s potential safety and efficacy benefits compared to CD20-depleting monoclonal antibodies, along with the advantage of at-home administration for patients with reduced mobility.

In other recent news, Morgan Stanley (NYSE:MS) has assumed coverage on Zenas Biopharma with an Overweight rating, setting a price target of $31.00. This development highlights the research firm’s positive outlook on Zenas Biopharma’s obexelimab, which inhibits B cells and may offer a potential advantage in autoimmune therapy treatments. Morgan Stanley noted several upcoming catalysts for the company, including results from the Phase III INDIGO trial for IgG4-RD expected by the end of 2025. Additionally, data from the Phase II MoonStone trial in RMS is anticipated in the early fourth quarter of 2025. The firm also pointed out that results from the Phase II SunStone trial in SLE, expected in mid-2026, could further validate obexelimab’s efficacy as a treatment option. These developments reflect the ongoing progress and potential future milestones for Zenas Biopharma.

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