Citi: Raises WuXi AppTec target price to HKD 138.6, Q3 performance exceeds expectations

Citi released a research report stating that it has raised the target price for WuXi AppTec's H shares from HKD 137.1 to HKD 138.6, and the target price for WuXi AppTec's A shares from RMB 124.7 to RMB 126, maintaining an "outperform" rating and listing the shares as a top pick in the mainland CRO and CDMO industry. WuXi AppTec's third-quarter performance was robust, with revenue, net profit, and order growth all exceeding market expectations. During the period, revenue and adjusted non-IFRS net profit increased by 15% and 42% year-on-year, respectively. The company has raised its full-year revenue growth guidance for continuing operations from 13%-17% to 17%-18%, and expects the full-year adjusted non-IFRS net profit margin to further improve year-on-year. The bank has also raised its revenue and net profit forecasts for WuXi AppTec for 2025 to 2027 by approximately 2% and 4%, respectively, to reflect the better-than-expected third-quarter performance and continued strong order growth