Stock of the Day

December 16, 2021

Zentalis Pharmaceuticals (ZNTL)

$3.76
-$0.04 (-1.1%)
Market Cap: $272.35M

About Zentalis Pharmaceuticals

Zentalis Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on discovering and developing small molecule therapeutics for the treatment of various cancers. Its products candidatures include the ZN-c3, an inhibitor of WEE1, a protein tyrosine kinase for the treatment of inhibitor for advanced solid tumors and hematological malignancies; in Phase 2 clinical trial as a monotherapy for the treatment of uterine serous carcinoma indications; Phase 2 clinical trial in Cyclin E1 driven high-grade serous ovarian cancer, fallopian tube, or primary peritoneal cancer; Phase 1/2 clinical trial in combination with PARPi for platinum-resistant ovarian cancer; Phase 1b clinical trial in combination with chemotherapy in platinum-resistant ovarian, and peritoneal or fallopian tube cancer; Phase 1/2 clinical trial in combination with chemotherapy in relapsed or refractory osteosarcoma; Phase 1/2 clinical trial with encorafenib and cetuximab for mutant metastatic colorectal cancer; and Phase 1/2 clinical trial in combination with chemotherapy in pancreatic cancer. The company's products pipeline also includes ZN-d5, an oral small molecule inhibitor of B-cell lymphoma 2, for hematological malignancies and related disorders; and BCL-xL heterobifunctional degrader, a member of the anti-apoptotic BCL-2 proteins, for solid tumors and hematological malignancies. Zentalis Pharmaceuticals, Inc. has licensing agreements and strategic collaborations with Recurium IP Holdings, LLC; Pfizer, Inc.; Zentera Therapeutics; Dana-Farber; and GlaxoSmithKline plc. The company was incorporated in 2014 and is headquartered in New York, New York.

Today's Trend

Zentalis Pharmaceuticals, Inc. (NASDAQ: ZNTL) has recently traded higher, with investor sentiment likely supported by HC Wainwright’s continued Buy rating and $10 price target. However, the research update also included broad reductions to future earnings estimates, creating a mixed outlook.

  • HC Wainwright maintained its Buy rating and $10 price target, implying substantial upside from recent trading levels. The firm continues to project improving results over time, with losses narrowing to $0.18 per share by fiscal 2030. Zentalis Pharmaceuticals stock analysis
  • Reported short-interest data showed zero shares short on both July 27 and August 11, with a 0.0-day days-to-cover ratio. Because the figures produced an invalid percentage change and appear inconsistent with a meaningful short-interest report, they provide no reliable trading signal.
  • HC Wainwright lowered its 2026 EPS forecast to a loss of $2.39 from $2.19 and reduced its Q3 and Q4 2026 forecasts to losses of $0.63 and $0.66 per share, respectively. The downward revisions point to higher expected expenses or slower progress toward profitability.
  • The analyst also cut longer-term forecasts: FY2027 EPS to a $2.76 loss from $2.32, FY2028 to a $2.13 loss from $1.80, FY2029 to a $1.00 loss from $0.77, and FY2030 to a $0.18 loss from $0.01. These revisions suggest profitability may arrive later and be weaker than previously expected.

Overall, the stock’s increase appears to reflect the bullish rating and $10 valuation target, while the extensive EPS reductions highlight significant execution, funding, and clinical-development risks. Zentalis remains loss-making, and its latest quarterly EPS also missed consensus estimates.

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