Analyst Jill Wu of CMB International Securities maintained a Buy rating on Wuxi Biologics (Cayman) (WXIBF – Research Report), boosting the price target to HK$30.94.
Jill Wu’s rating is based on WuXi Biologics’ impressive financial performance and strong growth prospects. The company reported a notable increase in revenue and adjusted net profit for 2024, with both metrics nearing the upper end of their projected growth range. This growth was driven by a significant rise in non-COVID revenue and a robust recovery in the second half of the year.
Furthermore, WuXi Biologics has demonstrated sustained strong customer demand, as evidenced by a growing backlog and a record number of new projects secured in 2024. The company’s strategic initiatives, such as expanding its project pipeline and increasing capital expenditure to support international expansion, are expected to further enhance its competitive position. Additionally, profitability is on track for recovery, supported by high-margin discovery services and ongoing capacity expansion. These factors collectively underpin Jill Wu’s decision to maintain a Buy rating and raise the target price for WuXi Biologics.
In another report released yesterday, Nomura also maintained a Buy rating on the stock with a HK$34.36 price target.