Citi has released a research report, raising the target price for WUXI APPTEC (02359) from HKD 183 to HKD 215, maintaining a "Buy" rating. The firm has increased its 2026 to 2028 revenue forecasts by 8% and its earnings per share estimates by 18%, 19%, and 15%, respectively, to reflect higher revenue guidance and improved profit margins.

The bank believes that WUXI APPTEC is experiencing robust demand across its business segments, with increased contributions from later-stage CMO projects driving its mid-year results to significantly exceed expectations. Management has raised its 2026 revenue guidance to between RMB 58.5 billion and RMB 60.5 billion, projecting year-over-year growth of 35% to 39% for continuing operations, which already accounts for a 3% to 5% currency depreciation impact from the US dollar.

In the first half of the year, the company's unfinished orders for continuing operations grew by approximately 30%, while new contract signings saw a year-over-year increase of over 40%. The small molecule CDMO segment has become a key growth accelerator, with small molecule development and production revenue climbing 73% compared to the same period last year. Revenue from mid-to-late-stage pipelines now accounts for more than 50% of total revenue, with over 80% of late-stage and commercial projects originating from the company's internal early-stage pipeline.