[ET Net News Agency, 13 July 2020] UBS Global Research lifted its target price for Wuxi
Biologics (02269) to HK$167 from HK$119 and maintained its "buy" rating.
The research house lowered its risk-free rate assumption from 4% to 3.5% to factor in
the decline in the US 10-year treasury rate. It raised its terminal growth rate assumption
from 4% to 5% as UBS is increasingly positive on the longer-term prospects of global
biological drug innovation.
UBS expects Wuxi to deliver a 35% revenue CAGR and a 32% net profit CAGR over 2019-24,
mainly fuelled by strong demand for biologic drug R&D. (KL)