Morgan Stanley Reiterates Overweight on WUXI APPTEC, Raises Target Price to HK$143.5

Stock News
Feb 20

Morgan Stanley has issued a research report reaffirming an "Overweight" rating for WUXI APPTEC (02359). Following the company's previously disclosed preliminary 2025 results, which showed improved gross margins, the firm has raised its profit forecasts for 2026 to 2030 by 0% to 3%. As a result, the target price has been increased from HK$143 to HK$143.5. The bank anticipates a compound annual growth rate of 24% in profits from 2024 to 2027. It remains optimistic about the company's unique CRDMO/CTDMO model and platform advantages, along with its leading number of early-stage projects among Chinese competitors. These factors are expected to provide stronger visibility for medium- to long-term growth compared to domestic peers.

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