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On Tuesday, H.C. Wainwright analyst Andrew Berens increased the price target for Zymeworks (NASDAQ:ZYME) to $13.00, up from the previous target of $12.00. The stock, currently trading at $11.1, has seen three analysts revise their earnings estimates upward for the upcoming period, according to InvestingPro data. Despite the adjustment in price target, the analyst has maintained a Neutral rating on the stock.
Zymeworks reported a net loss of $0.31 per share for the fourth quarter of 2024, which was wider than H.C. Wainwright’s forecast of a $0.12 per share loss. The discrepancy was largely due to revenue falling short of expectations. The company’s research and development (R&D) expenses amounted to approximately $37.1 million and selling, general, and administrative (SG&A) expenses were around $16.2 million. These figures were against the firm’s estimates of $38.5 million for R&D and $14.3 million for SG&A.
Looking forward, H.C. Wainwright now anticipates a net loss of $1.95 per share for the full year of 2025, which is an improvement from the previously estimated loss of $2.05 per share. At the end of 2024, Zymeworks had a strong financial position with $324.2 million in cash and equivalents, maintaining a healthy current ratio of 3.4x. The company holds more cash than debt on its balance sheet, with total debt of just $18.5 million. The analyst believes that the company’s financial resources are adequate to support its operations into the second half of 2027.
The revision of the price target to $13 from $12 is a result of moving the discounted cash flow (DCF)-based valuation forward. Based on InvestingPro’s comprehensive analysis, the stock appears slightly undervalued at current levels. Despite the slight increase in the price target, the analyst’s stance suggests that at the current share price, Zymeworks is considered to be fairly valued by H.C. Wainwright.
In other recent news, Zymeworks reported a net loss of $122.7 million for the fiscal year 2024, with a slight revenue increase to $76.3 million from $76.0 million in 2023. The company’s financial results have been a focal point for investors, particularly as Zymeworks continues to advance its therapeutic pipeline amidst a competitive biopharmaceutical market. Jazz Pharmaceuticals (NASDAQ:JAZZ)’ launch of Zanodetimab could potentially enhance future revenue streams for Zymeworks. Analyst firms have also weighed in on Zymeworks’ prospects. Stifel maintained a Buy rating with a $28 price target, noting strategic pipeline decisions and clinical trial updates as promising. Meanwhile, Citi raised the price target to $19, also maintaining a Buy rating, highlighting the company’s disciplined financial strategy and pipeline prioritization. These developments underscore the ongoing adjustments and strategic decisions within Zymeworks as it navigates its financial and developmental landscape.
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