SKN | Wells Fargo Lowers Zealand Pharma Price Target to DKK 390 but Maintains Overweight Rating

Key Points

• Wells Fargo reduced its price target for Zealand Pharma A/S to DKK 390 from DKK 420, a decrease of approximately 7.1%.
• The bank maintained its Overweight rating, indicating that its broader positive assessment of the company’s shares remains unchanged.
• Zealand Pharma ended 2025 with eight products in clinical development, including three Phase III candidates, three Phase II candidates and two Phase I candidates, alongside one preclinical programme.

Wells Fargo Adjusts Zealand Pharma Valuation

Wells Fargo lowered its price target for Zealand Pharma A/S to DKK 390 from DKK 420 while reiterating its Overweight rating.

The revised target represents a reduction of approximately 7.1%, reflecting an adjustment to the bank’s valuation expectations. However, maintaining the Overweight recommendation indicates that Wells Fargo continues to view the company’s investment prospects positively despite the lower target.

The adjustment places attention on Zealand Pharma’s development pipeline and its progress in peptide-based treatments, particularly in areas including diabetes, obesity and rare diseases.

Development Pipeline Remains Central to the Company’s Outlook

Zealand Pharma specializes in the research and development of peptide drugs, with a focus on treatments for diabetes, rare diseases and obesity.

At the end of 2025, the company reported eight products in clinical development. Three were in Phase III trials, three were in Phase II and two were in Phase I. Zealand Pharma also had one additional product in preclinical development.

The distribution of its development portfolio highlights the range of programmes at different stages of clinical evaluation. The three Phase III candidates represent the most advanced clinical programmes in the reported pipeline, while the earlier-stage candidates provide additional development opportunities.

For biotechnology companies, clinical progress is an important consideration in assessing future commercial potential. However, development timelines, trial outcomes and regulatory decisions remain important uncertainties.

Closing Insights

Wells Fargo’s decision to lower its price target while maintaining an Overweight rating reflects a more cautious valuation alongside an unchanged positive assessment of Zealand Pharma.

The company’s pipeline provides the central context for evaluating its longer-term prospects, with eight clinical-stage products spanning three phases of development and an additional preclinical programme.

Investors will need to monitor clinical progress and the company’s ability to advance its development candidates. The distinction between an analyst’s valuation adjustment and its underlying investment rating remains important: the revised DKK 390 target signals a lower price expectation, but the retained Overweight recommendation indicates that Wells Fargo has not abandoned its positive stance.

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