Citi lowers Zai Lab's target price to $58, third-quarter revenue misses expectations

AASTOCKS
2025.11.10 02:50

Citi published a research report indicating that Zai Lab (09688.HK) had total revenue of approximately USD 116 million in the third quarter, which is 16% and 22% lower than the bank's and market forecasts, respectively. Zai Lab's management significantly reduced its revenue guidance for this year from the previous USD 560 million to USD 590 million, down to at least USD 460 million, and removed the target of achieving operational expense balance this year.

The bank estimates that Zai Lab's total product revenue this year will be approximately USD 457 million. Considering the reset of the trajectory of its commercial business in China, although management has a deep understanding of the local market, the process will still be more challenging than expected. The bank also expects that the clinical data to be announced will serve as a catalyst for the stock, lowering Zai Lab's target price from USD 69 to USD 58, maintaining a "Buy/High Risk" rating

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