[ET Net News Agency, 29 June 2020] J.P. Morgan raised its target price for Wuxi
Biologics (02269) to HK$165 from HK$140 and maintained its "overweight" rating.
The research house said Wuxi's share price has generated a 52% return year-to-date, due
to strong investor sentiment on the CRO/CDMO (contract research organization/contract
development and manufacturing organization) space driven by long-term growth potential.
Despite the impact of COVID-19 and escalating tensions between the US and China, Wuxi
management continues to see strong global outsourcing demand.
As a result, the total planned capacity for the next two to three years has increased
significantly from 229KL in 2019 to 280KL in 2020. As a leader in the global outsourcing
industry, Wuxi is well-positioned to sustain strong growth in the near term, JPM said.
(KL)