The shares of biotech Zymeworks Inc (NYSE:ZYME) are higher today, thanks to some positive analyst attention. Last night -- and despite the stock's relatively blase reaction to earnings yesterday -- Raymond James reiterated its "outperform" rating and "high degree of conviction on the stock," saying it "strongly encourage[s] investors to take advantage of current valuation" ahead of upcoming clinical updates, including Zymeworks' R&D day in October. In addition, the analyst reiterated a $27 price target on ZYME -- in uncharted territory, and more than double the equity's current perch. Likewise, Citigroup this morning upgraded ZYME stock to "buy" from "neutral," and lifted its price target to $20.
Zymeworks shares are now on pace to end atop their 10-day moving average, which has been guiding the equity lower since its June 1 all-time high of $26, touched after the company reported well-received data on ZW25 at the American Society of Clinical Oncology conference. What's more, $26 represents double ZYME's initial public offering (IPO) price of $13. At last check, ZYME was up 7.1% to trade at $13.29, set to snap a seven-day run south of its IPO price.
While the stock has surrendered nearly half its value since the June 1 peak, it's no stranger to upbeat analyst attention. Five of the seven analysts following ZYME already deem it worthy of a "buy" or better rating, and the consensus 12-month price target is a lofty $24.29 -- an 83% premium to current levels.