Goldman Sachs issued a research report upgrading TIGERMED A-shares (300347.SZ) from "Neutral" to "Buy" with a target price increase from RMB 62.1 to RMB 77.1. The firm also initiated coverage on TIGERMED H-shares (03347) with a "Buy" rating and a target price of HK$62.1.

The investment bank noted that the stock's gains have lagged behind the mainland healthcare sector, viewing the current level as an attractive entry point. Goldman expects accelerated new order growth in Q4 this year, combined with improved earnings visibility for 2026-2028, which should drive share price performance.

The firm believes the industry is approaching a turning point, with recovery expected from late 2025 to 2026. This recovery will be primarily driven by a strong rebound in fundraising activities and increased upfront payments from licensing partnerships. Pricing has also continued to rise after stabilizing at the end of 2024.

Goldman projects TIGERMED's core earnings will achieve a compound annual growth rate of 37% from 2025 to 2028, supported by strong new order momentum driving mid-teens revenue growth (approximately 13%-17%). This reflects the company's leading position in the domestic market and continued global expansion.

The firm raised its earnings per share forecasts for 2026 and 2027 by 9% and 13% respectively. Goldman expects EBIT margins to improve by 180, 150, and 190 basis points for 2026-2028 respectively, based on reduced impairment losses, improved operating leverage, and enhanced cost control measures.