Morgan Stanley released a research report stating that MICROPORT (00853) continues to face domestic regulatory challenges, but demonstrates strong export momentum in surgical robotics (Medbot), cardiovascular, and vascular intervention businesses, with expectations to achieve breakeven by 2026. With cardiac rhythm management (CRM) obligations now resolved and major shareholder Otsuka having completed its exit, Morgan Stanley raised the stock's target price from the previous HK$8.6 to HK$16, equivalent to approximately 20 times the projected 2027 price-to-earnings ratio. The firm maintains its "In Line" rating.

Morgan Stanley reduced its sales forecasts for MICROPORT for 2025-2027 by approximately 2%, reflecting an 11% compound annual growth rate from 2024-2027. The firm expects net profit to reach breakeven in 2026 (unchanged), while raising net profit forecasts for 2026-2027 by 151% and 15% respectively from a low base.

Morgan Stanley also narrowed the holding company discount from 40% to 30% to reflect reduced liquidity concerns, and raised gross margin forecasts based on guidance. With ongoing cost-saving measures, the firm correspondingly reduced its operating expense forecasts.

Morgan Stanley now projects the company will achieve operational breakeven from a minimal base in 2025, with the 2025 net loss expected to narrow by 93% to approximately $55 million.