Citigroup raises WuXi AppTec's target price to 158.5 yuan, rating "Buy"

Citi published a report, raising the target price for WuXi AppTec (02359.HK) H shares from HKD 156 to HKD 158.5, and the target price for WuXi AppTec (603259.SH) A shares from the previous RMB 138 to RMB 140, with a rating of "Buy." This reflects the bank's optimistic outlook on Eli Lilly (LLY.US) regarding the tirzepatide and orforglipron projects, leading to a 2% increase in revenue and earnings per share forecasts. Citi estimates that these projects could drive strong growth in WuXi AppTec's TIDES business (Citi predicts a 40% annual growth rate for this business by 2026). Citi also anticipates that if orforglipron is launched in China in 2027, Pharmaron (03759.HK) will benefit, as its collaboration with Eli Lilly may further expand from the production of orforglipron DP in China. Compared to the last report published in July 2025, this revision incorporates a more optimistic sales outlook for GLP-1 drugs and WuXi AppTec's ongoing expansion of peptide/small molecule capacity. If Eli Lilly's GLP-1 product series sales exceed current forecasts, Citi believes there is further upside potential for the stock price