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Investing.com - Jefferies has assumed coverage on Zai Lab (NASDAQ:ZLAB) with a Buy rating and a price target of $52.00. The company, currently valued at approximately $4 billion, has seen its shares trade between $17.50 and $44.34 over the past 52 weeks.
The research firm identified Zai Lab as a "flagship China biotech" that is leading efforts to commercialize global innovation in China while demonstrating research and development strength internationally. According to InvestingPro data, the company has demonstrated strong revenue growth of 33% in the last twelve months and maintains a healthy balance sheet with more cash than debt.
Jefferies noted that while China’s biotech sector has experienced significant growth with the Hang Seng Biotech Index rising approximately 100% year-to-date, Zai Lab shares have increased by a comparatively modest 38% during the same period.
The firm sees potential for Zai Lab stock to catch up to sector performance, citing the company’s growing base business and increasing market appreciation for its pipeline, which includes DLL3-ADC.
Jefferies has transferred lead coverage of Zai Lab to analyst Kelly Shi, who authored the coverage assumption report.
In other recent news, Zai Lab Ltd reported its Q2 2025 earnings, which showed a larger-than-expected earnings miss. The company posted a loss per share of $0.04, which was better than the forecasted loss of $0.41. However, revenue did not meet expectations, coming in at $110 million compared to the forecast of $124.95 million. This earnings report is a significant development for investors monitoring Zai Lab’s financial health. The earnings miss and revenue shortfall were notable aspects of the company’s recent financial performance. These recent developments are crucial for stakeholders to consider when evaluating the company’s current position. Additionally, the earnings report may influence how analysts and investors view Zai Lab in the near future.
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