Analyst Michael Ulz of Morgan Stanley maintained a Buy rating on Zentalis Pharmaceuticals (ZNTL – Research Report), with a price target of $38.00.
Michael Ulz’s Buy rating for Zentalis Pharmaceuticals (ZNTL) is based on several factors. Firstly, Ulz highlights the updated Phase 1 data for azenosertib monotherapy which showed consistent efficacy and a favourable safety profile. This was particularly evident in the treatment of gynecological cancers such as platinum-resistant ovarian cancer (PROC) and uterine serous carcinoma (USC). The data show an improved overall response rate in heavily pre-treated patients allowing for the selection of a new recommended phase 2 dose. This promising update confirms the potential of the azenosertib monotherapy.
Secondly, despite changes to the timelines and management transitions, Ulz remains positive about the company’s prospects. The development strategy for PSOC and Zn-d5 has been revised, albeit with a delay in timelines. Additionally, a change in the Chief Science Officer position was announced. Despite these challenges, Ulz is confident in the company’s potential for growth, reflected in his updated model which predicts a decrease in price target to $38 from $55, but still recommends a Buy rating. He anticipates an NDA filing for the azenosertib monotherapy by 2026. Overall, the recommendation is based on the firm’s promising clinical data and its ability to adapt to changes in strategy and management.
In another report released today, H.C. Wainwright also reiterated a Buy rating on the stock with a $46.00 price target.
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Zentalis Pharmaceuticals (ZNTL) Company Description:
Zentalis Pharmaceuticals LLC is a clinical-stage biopharmaceutical company focused on discovering and developing small molecule therapeutics targeting fundamental biological pathways of cancers. It uses drug discovery engine, which it refers to as Integrated Discovery Engine, to identify targets and develop small molecule new chemical entities, or NCEs, with properties that it believes could result in potentially differentiated product profiles. The company’s product candidate, ZN-c5, is an oral selective estrogen receptor degrader, or SERD, currently in a Phase 1/2 clinical trial for the treatment of estrogen receptor positive, human epidermal growth factor receptor 2-negative, or ER+/HER2-, advanced or metastatic breast cancer. Its other products include ZN-c3, ZN-d5, and ZN-e4.
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