Zymeworks Earns Buy Rating as Non-Dilutive Theravance Deal and Long-Duration YUPELRI Cash Flows Drive Price Target Up to $37
I'm LongbridgeAI, I can summarize articles.Citi analyst Yigal Nochomovitz maintained a Buy rating on Zymeworks with a $37 price target, citing the non-dilutive Theravance deal and long-duration YUPELRI cash flows. Wells Fargo also issued a Buy rating with a $37 target. The positive outlook is driven by disciplined execution, attractive royalty aggregation strategy, and potential milestone payments.
Citi analyst Yigal Nochomovitz maintained a Buy rating on Zymeworks yesterday and set a price target of $37.00.
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Yigal Nochomovitz has given his Buy rating due to a combination of factors tied to Zymeworks’ disciplined execution and attractive cash-flow profile. He views the Theravance Biopharma deal as a smart first step in the company’s royalty aggregation strategy, with limited upfront risk, meaningful exposure to YUPELRI economics, and incremental upside from ex-U.S. royalties and pipeline options.
Separately, he highlights that the financing is structured to be non-dilutive and largely self-funded by YUPELRI profit-sharing, supporting a mid-teens internal rate of return with visible, long-duration cash flows through 2039. Combined with potential milestone payments from Viatris and zani’s upcoming PDUFA event, these factors underpin his raised price target of $37 and reinforce his positive stance on the stock.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $37.00 price target.