Zenas BioPharma (NASDAQ:ZBIO) Cut to “Equal Weight” at Morgan Stanley

Morgan Stanley downgraded shares of Zenas BioPharma (NASDAQ:ZBIO) from an overweight rating to an equal weight rating in a report published on Monday, MarketBeat reports. They currently have $19.00 price target on the stock, down from their prior price target of $37.00.

ZBIO has been the topic of a number of other research reports. Evercore ISI began coverage on shares of Zenas BioPharma in a report on Wednesday, November 26th. They issued an “outperform” rating and a $55.00 price objective on the stock. Wedbush reissued an “outperform” rating and issued a $45.00 price target on shares of Zenas BioPharma in a research report on Monday, December 22nd. HC Wainwright restated a “buy” rating on shares of Zenas BioPharma in a research note on Tuesday, December 16th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Zenas BioPharma in a research note on Monday, December 29th. Finally, Citigroup boosted their target price on Zenas BioPharma from $27.00 to $46.00 and gave the stock a “buy” rating in a report on Tuesday, October 28th. Six research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $43.14.

Zenas BioPharma Price Performance

ZBIO opened at $16.51 on Monday. The company has a current ratio of 5.66, a quick ratio of 5.66 and a debt-to-equity ratio of 0.37. The company has a market cap of $886.26 million, a price-to-earnings ratio of -2.34 and a beta of -1.45. The stock has a fifty day simple moving average of $35.51 and a two-hundred day simple moving average of $24.02. Zenas BioPharma has a 12-month low of $5.83 and a 12-month high of $44.60.

Zenas BioPharma (NASDAQ:ZBIO) last announced its earnings results on Wednesday, November 12th. The company reported ($1.22) EPS for the quarter, missing analysts’ consensus estimates of ($0.87) by ($0.35).

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. Quarry LP lifted its holdings in shares of Zenas BioPharma by 34.5% during the third quarter. Quarry LP now owns 1,134 shares of the company’s stock valued at $25,000 after purchasing an additional 291 shares in the last quarter. Russell Investments Group Ltd. purchased a new position in Zenas BioPharma in the 3rd quarter worth about $30,000. BNP Paribas Financial Markets lifted its stake in Zenas BioPharma by 120.0% during the 3rd quarter. BNP Paribas Financial Markets now owns 3,146 shares of the company’s stock valued at $70,000 after acquiring an additional 1,716 shares during the period. PNC Financial Services Group Inc. boosted its holdings in shares of Zenas BioPharma by 41.2% during the 2nd quarter. PNC Financial Services Group Inc. now owns 9,179 shares of the company’s stock valued at $89,000 after acquiring an additional 2,679 shares during the last quarter. Finally, Sei Investments Co. purchased a new stake in shares of Zenas BioPharma during the 2nd quarter valued at about $118,000.

Trending Headlines about Zenas BioPharma

Here are the key news stories impacting Zenas BioPharma this week:

• Positive Sentiment: Phase 3 INDIGO trial met its primary endpoint: obexelimab reduced IgG4‑RD flare risk and reportedly hit all key endpoints — a clear clinical win that supports regulatory and commercial potential. INDIGO transcript
• Positive Sentiment: Bullish research and commentary argue the INDIGO win could reshape Zenas’s autoimmune franchise and highlight other pipeline assets (e.g., orelabrutinib, BTK program) that add upside beyond a single indication. Commercial impact analysis
• Neutral Sentiment: Market-structure and valuation dynamics likely amplified the reaction: commentators note that a prior run-up in the stock and cross-trial comparisons created conditions for a sharp, rapid re‑pricing when investors debated long‑term commercialization. Selloff analysis
• Negative Sentiment: Shares plunged after the data release despite the positive readout — several outlets report heavy intraday selling and a steep drop from recent highs as investors reassessed near-term commercial prospects. Plunge coverage
• Negative Sentiment: Morgan Stanley cut its rating on ZBIO, lowering analyst sentiment and adding immediate selling pressure from institutional accounts. MS downgrade Firm rating note
• Negative Sentiment: A Pomerantz LLP investor investigation was announced, introducing potential legal/financial risk that can weigh on sentiment and share price until resolved. Investor alert
• Negative Sentiment: Coverage noting the stock “tanked” despite the positive trial and further articles documenting the sharp decline highlight that market reaction has been driven more by sentiment, analyst downgrades and perceived commercial uncertainty than by the headline clinical readout. Zacks tanking story

Zenas BioPharma Company Profile

Zenas BioPharma, Inc is a clinical-stage biotechnology company focused on the discovery and development of novel therapies in oncology and infectious diseases. The company’s proprietary platform integrates structure-guided design, computational modeling and high-throughput screening to address challenging protein-protein interactions. Zenas BioPharma is advancing multiple preclinical and clinical-stage candidates aimed at providing new treatment options where current modalities may be limited by efficacy or safety concerns.

Founded in 2021 and headquartered in Cambridge, Massachusetts, Zenas BioPharma was built to streamline the drug discovery process from target identification through to IND-enabling studies.