Zai Lab initiated with an Outperform at Scotiabank

Scotiabank initiated coverage of Zai Lab (ZLAB) with an Outperform rating and $55 price target The firm says that although geopolitical risk has capped the stock’s upside for years, Zai Lab is now positioned, for the first time since its inception, to become a global pharma company. The firm believes the company’s “strong execution, great products, and a solid pipeline cannot be ignored forever and should stand above negative headline risks.” Zai Lab is now expanding globally, and it is at a “major value inflection point that is still being underappreciated,” contends Scotiabank.