Deutsche Bank cuts Zealand Pharma stock target to DKK485

Published 20/05/2025, 10:08
Deutsche Bank cuts Zealand Pharma stock target to DKK485

On Tuesday, Deutsche Bank (ETR:DBKGn) analyst Emmanuel Papadakis revised the price target for Zealand Pharma A/S (NASDAQ:ZEAL:DC) (NASDAQ: ZEAL), lowering it to DKK485.00 from the previous DKK750.00. The stock, currently trading at $64.15, sits near its 52-week low of $57.30. According to InvestingPro analysis, Zealand Pharma appears undervalued based on its Fair Value estimate. Despite the adjustment in the price target, the firm maintained a Hold rating on the stock.

In the first quarter, Zealand Pharma reported financial results that were largely anticipated, with the EBIT loss aligning with Deutsche Bank’s expectations. With a strong current ratio of 25.1 and revenue projected to grow by 148% in FY2025 according to InvestingPro data, the company’s forecast for operating expenses in FY25 remains unchanged, projected to be between DKK2 billion and DKK2.5 billion.

Research and development updates included confirmation that phase 2 data for petrelintide in the ZUPREME-1 obesity study would not be available until the first half of 2026. The company has reiterated its target for 15-20% weight loss in this program. Additionally, combination studies for CT-388 are set to commence around the same period.

Zealand Pharma also indicated minor delays in the development of dapiglutide and survodutide, two other products in their pipeline. However, these delays are not considered to have a material impact on the company’s progress or timelines.

In other recent news, Zealand Pharma reported its financial results for the first quarter of 2025, revealing a revenue of 8 million DKK, largely attributed to its Segalog license agreement with Novo Nordisk (NYSE:NVO). The company is set to receive a significant upfront payment of $1.4 billion from Roche in the second quarter of 2025, reflecting a major collaborative effort. Zealand Pharma’s cash position stands at 8.5 billion DKK, with expectations to increase to approximately 18 billion DKK following the Roche deal. The company is optimistic about the future, with no immediate need for additional capital raising, and plans to discuss strategic initiatives at a Capital Markets Day in December. Despite the competitive obesity treatment market, Zealand Pharma is strengthening its pipeline with multiple trials underway. Analyst notes from firms such as Nordea and William Blair suggest continued interest in the company’s developments, particularly in its collaboration with Roche. The company remains confident in its financial health and strategic partnerships, positioning it well for future growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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