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Piper Sandler upbeat on Zura Bio stock, cites immunology pipeline potential

EditorEmilio Ghigini
Published 05/03/2024, 05:29 AM

On Friday, Piper Sandler initiated coverage on Zura Bio Ltd. (NASDAQ:ZURA) stock, a company specializing in immunology treatments, with an Overweight rating and a price target of $26. The firm highlighted the company's promising portfolio, which includes three key assets aimed at addressing various immunological diseases.

Zura Bio's leading assets are tibulizumab, ZB-168, and torudokimab, each offering a "pipeline-in-a-product" opportunity due to their potential applications across multiple conditions.

Tibulizumab, targeting IL-17/BAFF, is currently committed to treating systemic sclerosis (SSc) and Hidradenitis Suppurativa (HS). Piper Sandler notes the possibility of expanding its use, identifying 15 indirect catalysts that could drive its application in other conditions related to IL-17/BAFF.

For ZB-168 and torudokimab, which are focused on IL-7/TSLP and IL-33/RAGE respectively, Zura Bio is considering indications based on indirect catalysts observed in competitor studies. The firm sees a total of 14 indirect catalysts for IL-7/TSLP and 5 for IL-33, which could guide Zura Bio's strategy for these assets.

Piper Sandler's positive outlook on Zura Bio is bolstered by a total of 9 direct and 34 indirect catalysts that the firm believes could significantly drive the company's growth and establish it as a significant player in the immunology space. The $26 price target reflects the firm's confidence in Zura Bio's potential to leverage these catalysts and deliver value to shareholders.

InvestingPro Insights

As Zura Bio Ltd. (NASDAQ:ZURA) garners attention with Piper Sandler's optimistic coverage, key financial metrics and market performance data provide additional context for investors. An intriguing aspect of Zura Bio's financial health is its cash position, with InvestingPro Tips indicating the company holds more cash than debt, a reassuring sign for potential investors. Additionally, Zura Bio's liquid assets exceed its short-term obligations, suggesting a comfortable liquidity position.

However, Zura Bio's growth potential comes with considerations. The company has not been profitable over the last twelve months, as reflected in a negative P/E ratio of -3.92, and it currently does not pay a dividend to shareholders. Despite this, recent market performance shows a strong return over the last month at 48.81% and over the last three months at 32.12%, underscoring a positive short-term investment sentiment.

To delve deeper into Zura Bio's financials and market performance, investors can explore additional InvestingPro Tips, with 6 more tips available to help build a comprehensive investment strategy. For insights tailored to Zura Bio, visit https://www.investing.com/pro/ZURA and remember to use the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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