Morgan Stanley Forecasts WuXi Biologics Shares to Rise in Next 45 Days, Raises Target Price to HK$50

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Morgan Stanley has issued a research report indicating that it expects the share price of WuXi Biologics to increase over the next 45 days, with a probability of 70% to 80%. The firm has raised its profit forecasts for the period from 2026 to 2030 by 4% to 10%, citing accelerated revenue growth and margin expansion. The target price has been lifted from HK$45 to HK$50, with an "Overweight" rating maintained. The company previously issued a positive profit alert, and management has guided for accelerated growth in the 2026 fiscal year. An increase of 16% in the number of integrated projects for 2025, along with strong momentum in research services, points to robust performance in 2026. Additionally, the momentum in research services is expected to generate intellectual property-related revenue, further enhancing profitability. Recently, WuXi Biologics also entered into out-licensing agreements with Vertex and Zai Lab. The company anticipates strong growth in its manufacturing operations and highlighted that "multiple blockbuster drugs are anticipated." In 2025, the company completed 28 process performance qualification projects, a 75% year-over-year increase, which is viewed as a leading indicator for future commercial contracts.

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