Zentalis Pharmaceuticals (ZNTL – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Michael Ulz from Morgan Stanley maintained a Hold rating on the stock and has a $8.00 price target.
Michael Ulz has given his Hold rating due to a combination of factors surrounding Zentalis Pharmaceuticals’ current clinical and financial status. The company is progressing with its DENALI clinical trial, which is crucial for its future prospects, but the key topline data from Part 2 of this study is not expected until the end of 2026. This timeline introduces a degree of uncertainty, as investors will have to wait for these results to assess the full potential of their lead drug, azenosertib.
Additionally, while Zentalis has shown promising efficacy in earlier trials, the financials reveal a significant net loss for the year, and the company is relying on its cash reserves to sustain operations into late 2027. The ongoing patient enrollment in other studies adds to the potential, but the current financial and clinical outlook suggests a cautious approach. Therefore, the Hold rating reflects a balanced view, acknowledging both the potential and the risks involved until more definitive data is available.
In another report released yesterday, Wells Fargo also maintained a Hold rating on the stock with a $6.00 price target.
ZNTL’s price has also changed dramatically for the past six months – from $3.750 to $1.790, which is a -52.27% drop .