Goldman Sachs has issued a research report giving Wuxi XDC (02268) a "Buy" rating with a target price of HK$97.90, corresponding to approximately 35 times the forecast price-to-earnings ratio for the next 12 months.

The investment bank noted that Wuxi XDC has strong backlog order momentum and improved commercialization visibility. It continues to hold a positive outlook on the company's multi-year growth prospects, with commercialization catalysts becoming increasingly clear. The number of process performance qualification (PPQ) projects has reached 21, and the number of Biologics License Application (BLA) submissions is expected to rise.

Goldman Sachs pointed out that Wuxi XDC's Wuxi manufacturing facility may face its first FDA inspection in the first quarter of next year. Some customers' BLAs are expected to be submitted before the end of 2026, which would serve as an important validation milestone for its global commercial manufacturing capability.

The investment bank cited company management as saying that AI drug discovery (AIDD) can provide significant assistance for upstream target identification and molecule generation, but at this stage the direct impact of AI on CDMO order conversion remains limited, with the key bottleneck still being the execution of wet lab experiments. Management expects that the ability to integrate CDO/CDMO capabilities will be crucial for translating innovation into commercial opportunities.