Zai Lab's (ZLAB) Q3 results were broadly in line with expectations, with progress across its global drug pipeline, UBS said in a note emailed Friday.

The analysts said 2027 is expected to be a pivotal year, with the company planning to release key data from its second-line small cell lung cancer trial and potentially seek regulatory approval.

The company also plans to file for approval for its neuroendocrine carcinoma treatment, targeting an area with no currently approved therapies, the analysts added.

Zai Lab's China business has remained "stable" in recent quarters, particularly for Vyvgart, the analysts said, adding that management expects the China business to return to growth in 2027.

"Overall, we think multiple meaningful catalysts for the stock in 2027 and progress across the global pipeline and China business," the analysts added.

UBS kept its buy rating on the stock with a $35 per share price target. Shares of the company were up nearly 11% in the session.

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