Deep Dive Into Zymeworks Stock: Analyst Perspectives (10 Ratings)

Providing a diverse range of perspectives from bullish to bearish, 10 analysts have published ratings on Zymeworks ZYME in the last three months.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $16.3, a high estimate of $28.00, and a low estimate of $12.00. Witnessing a positive shift, the current average has risen by 25.38% from the previous average price target of $13.00.

Decoding Analyst Ratings: A Detailed Look

The analysis of recent analyst actions sheds light on the perception of Zymeworks by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Zymeworks. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Zymeworks compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Zymeworks's stock. This comparison reveals trends in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Zymeworks's market standing. Stay informed and make data-driven decisions with our Ratings Table.

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Unveiling the Story Behind Zymeworks

Zymeworks Inc is a clinical-stage biopharmaceutical company dedicated to the discovery, development and commercialization of next-generation multifunctional biotherapeutics. Its suite of therapeutic platforms and its fully integrated drug development engine enables precise engineering of differentiated product candidates. Its clinical candidate, zanidatamab, is a novel Azymetric HER2-targeted bispecific antibody currently being evaluated in multiple Phase 1, Phase 2, and pivotal clinical trials globally as a targeted treatment option for patients with solid tumors that express HER2. The company is also advancing a deep preclinical pipeline in oncology and other therapeutic areas.

Zymeworks's Financial Performance

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining Zymeworks's financials over 3 months reveals challenges. As of 30 September, 2024, the company experienced a decline of approximately -3.07% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of -186.56%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -7.72%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Zymeworks's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -5.95%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Zymeworks's debt-to-equity ratio is below the industry average at 0.06, reflecting a lower dependency on debt financing and a more conservative financial approach.

How Are Analyst Ratings Determined?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.