BofA Securities has lifted its target price for Pharmaron (03759) from HK$32.3 to HK$38.4, maintaining a "Buy" rating on the stock.

The brokerage noted that Pharmaron's first-half 2026 revenue climbed 17.9% year-on-year to RMB 7.6 billion, with growth recorded across all business segments. Laboratory services revenue increased 13.7% year-on-year, CDMO revenue surged 32.8% year-on-year, and clinical development revenue grew 13.8% year-on-year. The CDMO segment's gross margin improved by 2.7 percentage points, though this was partially offset by pressure in laboratory and clinical services.

Given the rapid expansion of the CDMO, laboratory services, and clinical development businesses, along with strong visibility in the global oral GLP-1 market, BofA Securities has raised its revenue forecasts for Pharmaron for 2026 through 2028 by 4%, 8%, and 12%, respectively. The firm is bullish on the growth potential driven by the CDMO business's upward cycle.