Analysts: Buy This Biotech Stock Now

Raymond James thinks ZYME stock could double

by Andrea Kramer

Published on Aug 2, 2018 at 1:41 PM

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.

ZYME stock chart august 2

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.


The best of Schaeffer's market analysis in a 5-minute weekly read.



NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories

16-Hour "Jump Trades" Unlock New Profit Potential
Click to continue to advertiser's site.
Why Dermira, Menlo Therapeutics are Red-Hot Today
The broader stock market is much lower this afternoon, though
Banks, Blue Chips Kick Off Earnings Season
Dow earnings are expected to come in droves again next week
16-Hour "Jump Trades" Unlock New Profit Potential
Click to continue to advertiser's site.