ZLAB Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Zai Lab Ltd (ZLAB) is not a strong buy at the moment for a beginner, long-term investor with $50,000-$100,000 available. While there are some positive indicators such as analyst ratings and a modest revenue increase, the financial performance, insider selling, and lack of significant positive catalysts make it prudent to hold off on investing right now.
The MACD is positive and expanding, suggesting bullish momentum. RSI is at 74.805, indicating the stock is nearing overbought territory. Moving averages are converging, showing no clear trend. The stock is trading near resistance levels (R1: 19.683, R2: 20.681), which could limit further upside in the short term.
Analysts maintain a positive outlook with JPMorgan and UBS issuing Buy/Overweight ratings and price targets of $35-$39, suggesting significant upside potential. The biotech sector is expected to recover in 2026, which could benefit Zai Lab.
Insiders are selling significantly, with a 2820.31% increase in selling activity over the last month. The company's financial performance shows declining net income, EPS, and gross margin YoY. No recent news or significant event-driven catalysts. Congress trading data is absent, and hedge funds are neutral.
In Q3 2025, revenue increased by 13.52% YoY to $116.1M, but net income dropped by 13.70% YoY to -$35.96M. EPS fell by 25% YoY to -0.03, and gross margin declined by 5.90% to 60.13%. The financials indicate growth in revenue but worsening profitability metrics.
JPMorgan lowered the price target to $39 from $46 but maintained an Overweight rating. UBS initiated coverage with a Buy rating and a $35 price target, citing recovery potential in the biotech sector. Analysts remain optimistic about the stock's long-term potential despite recent challenges.
